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 September 2015 • Global oil supply-demand balance • Strategic review processes
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Key NCS Takeaways September 2015
August with significant variations in oil price: Down from 53 USD/bbl July 30 to 43 Aug 24, then up again to 54 Aug 31. Global oil supply-demand balance not sustainable at current level. 50 USD/bbl unsustainable after 2016, 70 USD/bbl unsustainable after 2017.
Several E&P companies under strategic review. Small and mid-size players like Atlantic Petroleum, Noreco and North Energy still considering options. HitecVision recently acquired Rocksource (now Pure E&P), still holding Spike Exploration and Core Energy. Strategic review completed/ongoing also with Engie (previously GDF Suez), E.ON (plan is to list E&P part), Centrica and Dong Energy. EnQuest decided to sell their NCS assets (PL758, PL760, PL760B, PL800 in the Norne/Skarv area).
Edvard Grieg positive appraisal adding between 6 and 50 mmboe to the existing 183 mmboe. Luno II North discovery south of Edvard Grieg with 12-26 mmboe. This is on top of Luno II discovery with 27-71 mmboe. Mid point for both discoveries is hence 68 mmboe. Likely tie-back to Edvard Grieg and with same ownership: Lundin Petroleum (operator), OMV, Statoil, Wintershall.
Smørbukk South Extension at Åsgard field in the Norwegian Sea started production. The project adds 16.5 mmboe through a “combination of wells with long well sections and new completion technology (Fishbone)”. Operated by Statoil with partners Petoro, Eni, Total, ExxonMobil.
Johan Sverdrup PDO approved by MPE (PDO submitted in Feb 2015). Investments of NOK 117 billion expected for phase 1. Contracts worth almost NOK 36 billion awarded.
Maria PDO approved. Norwegian Sea subsea development operated by Wintershall, partners are Petoro, Centrica and Tellus (pending on approval after Wintershall transaction). NOK 15.3 billion development, up to 180 mmboe, production start expected 2018.