Rystad Energy has the great pleasure of inviting you to our Annual Oil & Gas Summit 2016, which is happening in conjunction with our regular user meeting. This year our key event will take place in Houston and London. Join us to hear about our up-to-date market analyses and overview, industry perspectives and data analysis discussions.
The Exploration StrategyConference, organized jointly by Rystad Energy and GeoPublishing, brings together the exploration focused North Sea community to exchange expert insight, network with fellow peers and develop discussions and solutions on current industry issues.
Date: November 1-2, 2016 Location: Stavanger, Norway
• 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 July 2016 • Detnor-BP merger • SDFI valuation
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Key NCS Takeaways July 2016
Aker BP merger
Det norske oljeselskap and BP has entered into an agreement where Det norske oljeselskap will acquire BP’s Norwegian subsidiary including tax loss of USD 267 million and net cash of USD 178 million for 135,1 million shares based on NOK 80 per share. Subsequently Aker, Det norske oljeselskaps’ majority owner, will acquire 33,8 million shares from BP to reach a final ownership structure of 40% Aker, 30% BP and 30% other Det norske oljeselskap shareholders in the merged entity Aker BP.
BP’s portfolio included about 225 MMboe of reserves and operatorship of Valhall, Skarv, Ula and Tambar. Together with Det norske oljeselskap’s portfolio the combined entity could grow from the current 110 kboe/d to around 250 kboe/d in 2024 based on the combined resources of 1,23 Bn boe, making Aker BP the biggest independent player on the NCS.
The merger with BP is the last in a long list of transactions made by Det norske oljeselskap. Its participation in the discovery of Johan Sverdrup which enabled additional financing has been paramount in the inorganic growth of Det norske oljeselskap. Aker BP has communicated further intentions to grow inorganically.
Faroe Petroleum announced the successful results of its North Sea Brasse exploration well and subsequent appraisal side track. Initial recoverable resources are estimated at between 43 and 80 MMboe with between 28 and 54 MMbbl being oil. Brasse is the first +60 MMboe discovery since Alta in 2014. Development will likely use Brage as host facilities and help extend the facility’s lifetime.
PDO (Plan for Development and Operations) for Oseberg Vestflanken 2 was approved by the Ministry of Petroleum and Energy. The unmanned wellhead platform will increase reserves by 110 MMboe and is the first of three phases to increase recovery from Oseberg.
The Tambar platform has received consent to extend its lifetime until 2022 from its original 15 year lifetime which would imply shut down July 2016.
New subsea installations at both Gullfaks (Rutil) and Balder have received consent for start-up by the Norwegian Petroleum Directorate.
Rystad Energy has on behalf of the Ministry of Petroleum and Energy conducted a valuation of the SDFI (State’s Direct Financial Interest)-portfolio. The pre tax value of the portfolio is assessed to be NOK 810 billion, down from NOK 1234 billion in 2014. Revised commodity prices are the main reasons for reduction in value with in particular lower gas prices having a considerable impact on the gas heavy portfolio. The full report can be accessed via the Ministry’s website.