Press release

November 2014 NCS E&P Updateices

November 13, 2014

Key NCS Takeaways November 2014

  • Alta discovery in the Barents Sea with 125-400 mmboe, operated by Lundin Petroleum. The discovery is made in PL609 20 km northeast of Gohta discovery. 85-310 mmboe oil, rest is gas. Lundin with 40%, partners are RWE (30%) and Idemitsu (30%). Extensive continued exploration of the license in 2015 communicated by Lundin (two appraisal wells on Alta and a wildcat on the Neiden prospect). Johan Castberg and Alta/Gohta most likely to be developed as separate field centers, unless hydrocarbons are sent to shore
  • The oil price decline accelerated in October on continued bearish news for near term supply-demand balances. Brent oil price down from 94 USD/bbl Oct 1 to 83 USD/bbl Nov 5. Demand growth has been revised lower, US shale production growth has shown no sign of slowing and OPEC production grew in September. Saudi Arabia has lowered official selling prices twice, spurring speculation of a “price war” and in-action from OPEC at the upcoming 27 November meeting, despite an increasingly over-supplied 2015 oil balance