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 May 2016 • Undiscovered resources development • LUPE – STL Edvard Grieg transaction • Detnor-Centrica transaction
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Key NCS Takeaways May 2016
Tellus and owner Sequa Petroleum NV announced that the acquisition of 15% in Gina Krogh from Total and 0,554% in Ivar Aasen from OMV will not be completed due to market conditions.
DETNOR has entered an agreement with Centrica to acquire the discoveries Frigg-Gamm-Delta in PL442 and PL 026B and Rind in PL 026 with effective date 1.1.2016.
Statoil and Lundin entered an agreement where Lundin will acquire Statoil’s 15% interest in PL338 including the Edvard Grieg field and the Apollo discovery as well as 9% interest in the Edvard Grieg oil pipeline and 6% interest in the Utsira High Gas pipeline, and Statoil will increase ownership in Lundin from 11.93% to 20.1%. The consideration includes a cash payment of US$ 68 million to Lundin. Lundin will also issue to Statoil 27,580,806 shares in Lundin Petroleum based on share prices of SEK 138 per share and a SEK/USD of 8.09. In addition Lundin will transfer 2,000,000 treasury shares and will also issue additional 1,735,309 shares to Statoil in exchange for cash consideration based on the market value of the shares related to closing date. Lundin is increasing 2P reserves in 2016 by 31 mmboe and Statoil can equity account its share of Lundin reserves. This gives a price of 15 bbl/boe assuming share price traded at market value and value of pipelines and Apollo discovery set at zero.
The Konkraft report “Nordover – norsk sokkel i endring” concluded that new exploration acreage is important to secure the future of the Norwegian oil and gas industry. The most attractive exploration areas still not opened for exploration are Nordland VI, Nordland VII, and Troms II in the Lofoten Vesterålen area. The key conclusion of the report concludes that an impact assessment study should be carried out for the area.
OKEA is prequalified as license holder on the NCS. The company is working on submitting a Plan for Development and Operation for the Yme discovery by the end of 2016.