January 2017

NCS E&P Update

RYSTAD ENERGY PRODUCT HIGHLIGHTS

• NCSAtlas: provides monthly up-to-date information on licenses and field activities on the Norwegian Continental Shelf, including area-by-area reviews, exploration drilling activity, reserves/resources benchmarks, production profile outlooks and monthly feature topics (e.g. asset transaction).

NCSAtlas Insights
January 2017

• 2016 Summary
• Recent Transactions


Future Well Count

Ivar Aasen area insight

CONTACT

NCS@rystadenergy.com

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Key NCS Takeaways January 2017

M&A

  • Kufpec has entered into agreement with Total to acquire Total’s interest in Sleipner field, Gungne and Utgard as well as 15% in the Gina Krogh development.
     
  • Dea has entered into agreement with Engie to acquire 20% in the Njord field and 10% in the Hyme field. The deal also includes 10% in Snilehorn, 15% in the Noatun and 20% in the Nordflanke discoveries. The reserves are 45 mmboe.
     
  • Delek Group has acquired Dana’s share of 13.18% in Faroe Petroleum. Delek is Israel’s largest integrated energy company.
     
  • Gazprom has entered a swap agreement with OMV that includes Gazprom acquiring 38.5% of the shares in OMV Norway.

Exploration

  • Lundin made a discovery in well 7220/6-2 Neiden that is located 60 km northeast of Alta and 20 km east of Johan Castberg discoveries. The resources discovered are in the range of 25-57 mmboe.
     
  • Statoil announced a commercial oil and gas discovery in the Cape Vulture prospect close to its operated Norne field in the Northern Norwegian Sea. The resources are estimated at 20-80 MMboe. Statoil has indicated that the discovery has derisked several similar prospects in the area which might be subject to follow up drilling.
     
  • APA 2016 was announced with 56 licenses awarded to 29 companies. 35 awards are in the North Sea, 17 in the Norwegian Sea and 3 in the Barents Sea. Most work commitments involve a drill-or-drop decision while PL894, with Wintershall as operator, has a firm well commitment.

Field Developments

  • Ivar Aasen started production on time and budget. The reserves are 186 mmboe. Another 18 mmboe can be added in Phase 2 with development of the Hanz discovery.
     
  • Maersk Oil plans to shut-in the Tyra field in Denmark on October 1st 2018 due to subsidence of the chalk reservoir. 90% of Danish gas is routed through these facilities. Also implies Trym shut down.

OPEC Cut

  • OPEC met with non-OPEC countries who agreed to a 558 kbbl/d output cut, contingent upon OPEC’s ability to meet their output targets. In Rystad Energy base case, it is assumed that only 40% of the cuts will be implemented.

 

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