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NCSAtlas Insights October 2015 • APA15 applications • Rig rates and rig demand
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Key NCS Takeaways October 2015
The deadline for APA 2015 application was September 2. The Ministry of Petroleum and Energy revealed 43 applicants, down from 47 for APA 2014. Notable new companies applying were BP, Wellesley and Origo. Notable companies not applying were Maersk, ExxonMobil, Lotos, Idemitsu, Mitsui, BG and Noreco.
New rig contracts awarded for development drilling on Johan Sverdrup (Deepsea Atlantic) and Maria (Deepsea Stavanger). Rig rates are around USD 300 000 per day for both contracts. OMV also contracted Transocean Spitsbergen for two exploration wells in the Wisting area at an undisclosed rate.
Results from the much anticipated Pil & Bue and the surrounding area exploration campaign have disappointed so far. Both the Shell operated Portrush and VNG operated Boomerang failed to live up to pre-drill expectations despite a small discovery in Boomerang. Repsol operated Hagar and VNG operated Blink could still yield successful discoveries.
Details around OKEA were revealed with Private Equity player Seacrest investing USD 200 million. Seacrest is also the main investor behind exploration focused Fortis Petroleum.
Alta III appraisals 7220/11-3 and 7220/11-3 A were completed with no updated resource estimate. All appraisals have proved movable oil and gas as well as pressure communication. Two more appraisal wells likely to be drilled in 2016 as well as one re-entry.
Both Martin Linge and Goliat appear to be delayed compared to the latest start-up estimates. Martin Linge will be delayed at least one year to early 2018 according to Total. Goliat was expected to start-up summer 2015, but ENI has not received consent from the Petroleum Safety Authority Norway.
Det norske oljeselskap released a press release indicating that the new Capex estimate for Johan Sverdrup phase 1 is now NOK 114 billion compared to the initial NOK 123 billion (nominal terms) in the Plan for Development and Operations.
Verdict was reached in the Gassled court case regarding the tariffs in the Gassled pipeline system. The government was not found guilty in making an unlawful tariff change and was also not found guilty of failing to adequately inform investors of regulatory risk thus triggering a compensation to the plaintiffs.