Goliat Field, Norway, Commercial Asset Valuation and Forecast to 2027

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Norway Market Research

The Goliat field is located in Block 7122/7 and 7122/8 at Barents Sea in Norway. The field is around 50 kilometers southeast of the Snohvit field and is in the sub area Finnmark West in the southwestern part of Barents Sea, Norway. Goliat is an offshore crude oil and natural gas field which is at the sea depth of 360 meters to 420 meters. The total area of the field is estimated to be 1,010 square kilometer.

The field is operated by Eni Norge AS, which is also its major equity partner with65% of equity interest. Eni Norge ASis a subsidiary of Italian based company Eni S.p.A. The company operates in the oil and gas, electricity generation and sale, petrochemicals, oilfield services construction and engineering industries.

The field is owned by two equity partners; one is Eni Norge AS and other is Statoil Petroleum AS. The Statoil Petroleum AS has 35% of equity interest in the field.

The Goliat field is currently in its development stage. The development project of the field started in the last quarter of 2009. The production from field is estimated to start by the last quarter of 2013.
The Goliat field is majorly a crude oil field with small quantity of natural gas and natural gas liquids. The crude oil in the field has an API gravity ranging between 31º to 34º API.

The Goliat field is likely to go on-stream in the last quarter of 2013. The field is estimated to produce 34 million barrels of crude oil a year by the second year of production (2014). After the second year, production will decline rapidly to around 10.5 million barrels of crude oil a year.

The life of the field is expected to be around 14-15 years with complete abandonment by 2027. The field is expected to generate $18 billion in revenues (undiscounted) during its life (starting 2013) and is expected to yield an IRR of approximately 10.1%.

Scope

• The report provides detailed information on oil and gas production, infrastructure, reserves, geology, operator and equity partners and the latest fiscal terms applicable to the asset and provides its fair value (Remaining Net Present Value) based on remaining reserves, forecast production, capital and operational costs, fiscal regime and commodity prices.
• The report also provides additional valuation parameters like Internal Rate of Return (IRR), Profitability Index (PI), Pay Back (discounted and undiscounted), Entitlement Production (EP) and Working Interest (WI) to enhance your decision making process.
• This report provides detailed sensitivity analysis of the remaining NPV with changes in the commodity prices, discount rate, production and key fiscal terms.
• Detailed cash flows over the life of the asset are included in the report. These cash flows cover a wide range of calculations related to various payments to the government/licensing authority.
• Interactive Excel models can be used to derive custom valuations, sensitivities and cash flows based on the specific inputs by the user in the model. These custom inputs vary from production data, cost information, price information and fiscal terms information.

Reasons to buy

• Make well informed investment decisions based on detailed operational analysis and cash flow forecasts
• Estimate the fair value of your future investment under different economic and fiscal conditions
• Value a prospective investment target through a comprehensive analysis using focused forecasting and valuation methodologies.
• Supporting interactive excel model will enhance your decision making capability in a more rapid and time sensitive manner
• Evaluate how the changes in the country’s fiscal policies impact the cash flows and the present value of the asset

 1 Table of contents 2

1.1 List of Tables 3
1.2 List of Figures 3

2 Goliat Field, Norway, Introduction 4

3 Goliat Field, Norway, Geology and Formations 6

4 Goliat Field, Norway, Equity Partners 7

5 Goliat Field, Norway, Crude Oil and Natural Gas Reserves 8

6 Goliat Field, Norway, Key Fiscal Terms 9
6.1 Fees 9
6.2 Special Petroleum Tax 9
6.3 Taxation 9
6.4 Carbon Dioxide Tax 9
6.5 Deductions and Depreciation 9

7 Goliat Field, Norway, Infrastructure 10
7.1 Upstream Infrastructure 10
7.1.1 Wells 10
7.1.2 Goliat FPSO (Floating Production, Storage and Offloading), Sevan 1000 11
7.1.3 Subsea Production System 12
7.2 Midstream Infrastructure 12
7.2.1 Goliat Field - Transportation 12
7.2.2 Advanced Standby Vessel 13

8 Goliat Field, Development Plan, Investment and Expenditure 14
8.1 Sevan Floating, Production, Storage and Offloading 1000 14
8.2 Subsea Production Systems 14
8.3 Flowlines/Risers Installations 15
8.4 Standby Vessel 15

9 Goliat Field, Norway, Crude Oil and Natural Gas Liquified Production 16

10 Goliat Field, Norway, Field Economics 18
10.1 Goliat Field, Norway, Economic Assumptions 18
10.1.1 Forecast Commodity Prices 18
10.1.2 Inflation 18
10.1.3 Discount Rate and Representation of Cash Flows 18
10.1.4 Sensitivity 18
10.1.5 Access to the Economic Model 18
10.2 Goliat Field, Norway, Cash Flow Analysis 19
10.3 Goliat Field, Norway, Remaining PV Sensitivity Analysis 20
10.3.1 Remaining NPV Sensitivity to Discount Rate and Commodity Price 20
10.3.2 Remaining NPV Sensitivity to Changes in Commodity Prices and Production Rates 21
10.3.3 Remaining NPV Sensitivity to Special Petroleum Tax and Production Rate 22

11 Goliat Field, Norway, Summary Cash Flows 23
11.1 Goliat Field, Norway, Front End Load Due To Fiscal Policy 24
11.2 Goliat Field, Norway, Tax Liability 25

12 Appendix 26
12.1 Methodology 26
12.2 Coverage 26
12.3 Secondary Research 26
12.4 Primary Research 26
12.5 E&P Forecasts 27
12.6 Capital Costs 27
12.7 Exploration and Appraisal (E&A) Costs 27
12.8 Operating Costs 28
12.9 Expert Panel Validation 28
12.10 About GlobalData
12.11 Contact Us
12.12 Disclaimer

1.1 List of Tables
Table 1: Goliat Field, Norway, Key Asset Data, 2010 4
Table 2: Goliat Field, Norway, Field Reserves, 2010 8
Table 3: Goliat Field, Norway, FPSO Sevan 1000 Topside Process , Capacities, 2010 12
Table 4: Goliat Field, Norway, FPSO Sevan 1000 Dimensions, 2010 12
Table 5: Goliat Field, Norway, Field Development Schedule, 2010 14
Table 6: Goliat Field, Norway, Forecasted Production, Thousand Barrels, 2013-2027 17
Table 7: Goliat Field, Norway, Commodity Price Assumptions, 2013-2027 18
Table 8: Goliat Field, Norway, Project Analysis Metrics, 2010 19
Table 9: Goliat Field, Norway, Remaining PV Sensitivity Analysis Over Discount Rate Vs. Commodity Price Change, in Million Dollars, 2010 20
Table 10: Goliat Field, Norway, Remaining PV Sensitivity Analysis over Commodity Price Change Vs Production Rate, in Million Dollars, 2010 21
Table 11: Goliat Field, Norway, Remaining PV Sensitivity Analysis over Special Petroleum Tax Change Vs. Production Rate, in Million Dollars, 2010 22
Table 12: Goliat Field, Norway, Asset Summary Cash Flows, Thousand $, 2009-2027 23
Table 13: Goliat Field, Norway, Front End Load, Thousand $, 2009-2027 24
Table 14: Goliat Field, Norway, Tax Liability Estimations, Thousand $, 2009-2027 25

1.2 List of Figures
Figure 1: Goliat Field, Norway, Location, 2010 5
Figure 2: Goliat Field, Norway, Illustrative Diagram of Formation, Middle Member, 2007 6
Figure 3: Goliat Field, Norway, Equity Details, 2010 7
Figure 4: Goliat Field, Norway, Infrastructure Map, 2010 10
Figure 5: Goliat Field, Norway, Floating Production Storage and Offloading (FPSO), 2010 11
Figure 6: Goliat Field, Norway, Advanced Standby Vessel, 2010 13
Figure 7: Goliat Field, Norway, Production Forecast, 2013-2027 16
Figure 8: Goliat Field, Norway, Gross Revenue Versus Post Tax Cash Flow Analysis, 2009-2027 19
Figure 9: Goliat Field, Norway, Remaining PV Sensitivity Analysis Over Discount Rate Vs. Commodity Price Change, in Million Dollars, 2010 20
Figure 10: Goliat Field, Norway, Remaining PV Sensitivity Analysis over Change in Production Rate Vs. Commodity Price Change, in Million Dollars, 2010 21
Figure 11: Goliat Field, Norway, Remaining PV Sensitivity Analysis over Special Petroleum Tax Change Vs. Production Rate, in Million Dollars, 2010 22