• 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).
NCS Newsletter Subscription: If you are not yet a subscriber to this email, please fill out the subscription form.
Key NCS Takeaways March 2016
DETNOR has entered into an agreement with Noreco Norge AS to acquire Noreco’s entire portfolio with the key asset being PL 492 Gohta in the Barents Sea. DETNOR also receives cash of 45 mill NOK. This is a solution that will cover most of the bondholders' investments when all tax balances are refunded from the tax office.
M Vest Energy has entered into an agreement with Atlantic Petroleum Norge As (APN) to take over all of the licenses, employees and cash balance of NOK 19 million at a price of NOK 1. Upon completion APN will cease operations in Norway and the tax loss carry forward will be refunded in 2017 to P/F Atlantic Petroleum. M Vest Energy AS is partially owned by the existing management and investor Trond Mohn.
Statoil and partners have chosen subsea development as concept for Snorre 2040 with final investment decision expected in 2017 and production start in 2021.
Drilling on Johan Sverdrup started this month on a drilling program with 35 wells using Deepsea Atlantic.
Detnor has decided to not go ahead with Vette development. License potentially to be relinquished
Sleipner Alpha has been renamed Utgard and a PDO might be submitted as early as July 2016
BP appears to move ahead with a potential 200 MMboe Snadd development as a tie-back to its Skarv FPSO. Concept selection expected end 2016, final investment decision 2017 and production start 2019
Small gas discovery of 6-12 mmboe in PL 104 B-Vest Angkor Thom in the Oseberg area. PL 611 Kvalross gas prospect in the Barents Sea, PL 554 Uptonia in the Garantiana area and PL 544 Fosen close to Luno II were all dry.
28 licenses relinquished following numerous Drill-or-Drop deadlines or disappointing wells.
Lundin signed a contract with Ocean Rig for Leiv Eriksson at record low $155,000 per day for three firm wells Alta-3 test, re-entry Neiden and Fillcudi. The contract also includes optional wells.
SSB & NPD Updates
SSB estimates an investment in 2016 of 163,9 BN NOK which is reduction of 13.3% compared to same reporting last year. Exploration investments are further reduced by 25.5% compared to last update and are down 44% compared to 2015.
NPD updated the resources for the NCS. Some of the most important changes are upgraded Wisting and Askja resources as well as increased Barents Sea YTF.
Rystad Energy estimates that the investment in the UK E&P was reduced by 20% from 2014 to 2015 and is expected to be reduced by another 25% from 2015 to 2016. The UK E&P business as whole have a break even price of $67/bbl.