Njord Field, Norway, Commercial Asset Valuation and Forecast to 2016
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Njord is an oil and gas field located in blocks 6407/7 and 6407/10 in
the Haltenbanken area of the Norwegian continental of Norway. Njord was
discovered in late 1986 by the exploratory well 6407/7-1S in the East
Flank and was subsequently appraised by well 6407/7-2 in the Central
Area, 6407/7-4 in the East Flank, and 6407/7-3 and 6407/7-5 in the
Northern Area within a time frame of 1986-1991. Njord came onstream in
1997. StatoilHydro ASA is the operator of the field. The other equity
partners are E.ON Ruhrgas AG (30%), ExxonMobil Corporation (20%), GDF
Suez (20%), Petoro A/S (7.5%) and VNG Norge AS (2.5%).
Njord
reservoir contains light crude oil with an average specific gravity of
around 46.6° API and low sulphur content (0.05%).The sea depth in the
area is 330 meters. Njord infrastructure comprises of Njord A, which is a
semi-submersible floating steel platform with drilling, accommodation
and production facilities and Njord B which is a storage vessel. The
facility is located over subsea completed wells connected through
flexible risers. The PDO for Njord gas export was approved in January
2005.
Njord produced 4,673.51 thousand barrels of crude oil during
2009. The owners of the field are planning to increase the production
by making developments during 2012 and 2013. Njord achieved peak
production of 24,664.52 thousand barrels of oil in 2000. The Njord
project is based on a subsea solution with Njord Semi Submersible
topside solution. Total capital expenditure estimated for the entire
life of asset is NOK 13.8 billion.
The field life of Njord is
expected to be around 19-20 years with complete abandonment during 2016.
The field is expected to generate $5.36 billion in revenues
(undiscounted) during its remaining life (starting January 1, 2010) and
is expected to yield an IRR of around 8.37%
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.
- 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
1.1 List of Tables 4
1.2 List of Figures 4
2 Executive Summary 5
3 Njord, Norway, Introduction 7
4 Njord, Norway, Geology and Formations 8
5 Njord, Norway, Equity Details 9
6 Njord Norway, Crude Oil Reserves 10
7 Njord, Norway, Applicable Fiscal Regime 10
7.1 Contract Type 10
7.2 Royalty 10
7.3 Fees 10
7.4 Special Petroleum Tax 11
7.5 Taxation 11
8 Njord, Norway, Infrastructure 11
8.1 Upstream Infrastructure 11
8.2 Midstream Infrastructure 12
9 Njord, Norway, Development Plan, Investment and Expenditure 13
9.1 Gygrid Oil Discovery 16
9.2 Oil&Gas: Njord north-west to be developed 16
9.3 Statoil Plans Turnarounds for Njord’s Oil and Gas Fields 16
10 Njord, Norway, Crude Oil and Natural Gas Production 17
11 Njord, Norway, Economics 20
11.1 Njord, Economic Assumptions 20
11.1.1 Forecast Commodity Prices 20
11.1.2 Inflation 20
11.1.3 Discount Rate and Representation of Cash Flows 20
11.1.4 Sensitivity 20
11.1.5 Access to the Economic Model 20
11.2 Njord, Norway, Cash Flow Analysis 21
11.3 Njord, Norway, Remaining PV Sensitivity Analysis 22
11.3.1 Remaining NPV Sensitivity to Discount Rates 22
11.3.2 Remaining NPV Sensitivity to Change in Commodity Prices and Production 23
11.3.3 Remaining NPV Sensitivity to Special Petroleum Tax and Production Rate 24
12 Njord, Norway, Summary Cash Flows 25
12.1 Njord, Norway, Front End Load Due To Fiscal Policy 26
12.2 Njord, Norway, Tax Liability 27
13 Appendix 28
13.1 Methodology 28
13.2 Coverage 28
13.3 Secondary Research 28
13.4 Primary Research 28
13.5 E&P Forecasts 29
13.6 Capital Costs 29
13.7 Exploration and Appraisal (E&A) Costs 29
13.8 Operating Costs 29
13.9 Expert Panel Validation 30
13.10 About GlobalData
13.11 Contact Us
13.12 Disclaimer
1.1 List of Tables
Table 1: Njord, Norway, Key Valuation Metrics, 2010 6
Table 2: Njord, Norway, Key Equity Partners,2010 6
Table 3: Njord, Norway, Key Asset Data, 2010 7
Table 4: Njord, Norway, Field Reserves, January 2010 10
Table 5: Njord, Norway, Exploration Wellbore(s) 13
Table 6: Njord, Norway, Development Wellbore(s) 14
Table 7: Njord, Norway, Crude oil, Natural gas and Condensate Historic and Forecast Production, 1997-2016 19
Table 8: Njord, Norway, Commodity Price Assumptions, 1997-2016 20
Table 9: Njord, Norway, Project Analysis Metrics, 2010 21
Table 10: Njord, Norway, Remaining PV Sensitivity Analysis Over Discount Rate Vs. Commodity Price Change, in $m 22
Table 11: Njord, Norway, Remaining PV Sensitivity Analysis over Commodity Price Change Vs Production Rate, in $m 23
Table 12: Njord, Norway, Remaining PV Sensitivity Analysis at 10% Discount Rate over Special Petroleum Tax Change Vs Production Rate, in $m 23
Table 13: Njord, Norway, Asset Summary Cash Flows, Thousand $, 1995-2016 25
Table 14: Njord, Norway, Front End Load, Thousand $, 1997-2016 26
Table 15: Njord, Norway, Tax Liability Estimations, Thousands $,1997-2016 27
1.2 List of Figures
Figure 1: Njord, Norway, Historic and Forecast Production, Thousand Barrels, 1997-2016 5
Figure 2: Njord, Norway, Gross Revenue Split, %, 2010 5
Figure 3: Njord, Norway, NPV Sensitivity 6
Figure 4: Njord, Norway, Location Map 8
Figure 5: Njord, Norway, Illustrative Diagram of Geology and Formation 9
Figure 6: Njord, Norway, Equity Partners and Their Equity Stakes, %, 2010 9
Figure 7: Njord, Norway, Platform 11
Figure 8: Njord, Norway, Infrastructure- Oil Production Facilities 12
Figure 9: Njord, Norway, Project Facilities 15
Figure 10: Njord Field, Norway, Development Schematic 15
Figure 11: Gygrid Oil Discovery Could Extend Njord's Commercial Life 16
Figure 12: Njord, Norway, Historic Production and Forecast, Oil Production, Thousand Barrels,1997-2016 17
Figure 13: Njord, Norway, Historic Production and Forecast, Gas Production, MMcf, 2007-2015 17
Figure 14: Njord, Norway, Forecast, Condensate Production, Thousand Barrels, 2012-2014 18
Figure 15: Njord, Norway, Gross Revenue versus Post Tax Cash Flows, 1995-2016 21
Figure 16: Njord, Norway, Remaining PV Sensitivity Analysis Over Discount Rate Vs. Commodity Price Change, in $m 22
Figure 17: Njord, Norway, Remaining PV Sensitivity Analysis over Change in Production Vs. Commodity Price Change, in $m 23
Figure 18: Njord, Norway, Remaining PV Sensitivity Analysis Over Special Petroleum Tax Change Vs. Production Rate, in $m 23
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