Valhall, Norway, Commercial Asset Valuation and Forecast to 2035
http://www.reportsandreports.com/market-reports/valhall-norway-commercial-asset-valuation-and-forecast-to-2035/
Valhall is located in blocks 2/11 and 2/8 in the southern part of the
Norwegian North Sea close to the UK and Danish borders. Valhall is oil
and gas field covering a total area of 104.96 Squarekilometer. Valhall
was discovered in 1975 by BP Plc and is also the current operator of the
field. Valhall is the world's first offshore oil field to receive its
electricity from land, with no need for on-platform generation.
BP Plc is the operator of the field since its discovery. BP Plc holds
an equity stake of 28.1% in the field. The other equity partners are
Hess Corporation, Royal Dutch Shell Plc and Total S.A. with an equity
stakes of 28.1%, 28.1% and 15.7% respectively. Total S.A. made an
announcement on 27th April, 2010 to sell its stake (15.7%) to the
operator, BP Plc. The official agreement to sell is subject to
partners’ consent and approval by relevant authorities in the upcoming
weeks. With this the BP Plc stake in Valhall will increase to 43.8%.
The field reservoir contains light crude oil, of 36° API and is located
in 70 meters water. At the time of discovery, the field had total
estimated reserve of 907.02 million barrels of oil and 1,915.6 billion
cubic feet of gas. The reservoir depth is approximately 2,400 meters
Production from Valhall field started in 1982 and is expected to
continue until 2035. The total number of production wells drilled is
136. The peak production for oil and gas was in the year 1999 with
33,401,459.92 barrels of oil and 37,027.19 million cubic feet of gas.
The operator BP Plc redeveloped the field by constructing production
platform, which costs around NOK 6.75 billion. The production from
redeveloping the field will start from third quarter of 2010.
Valhall produced 636.6 million barrels of crude oil, 39.39 million
barrels NGL and 709.2 bcf gas till 2009 and has a current capacity of
150,000 barrels per. Valhall is a demanding field and has been under
continuous development since start-up in 1982.The owners of the field
are planning to expand the capacity by re-developing it. The
redevelopment of the field started in 2007 and 60% of the redevelopment
has been completed by the end of February, 2010. A new high technology
production and hotel platform will be installed in 2010.
The field life of Valhall is expected to be around 55-60 years with
complete abandonment during 2035. The field is expected to generate
$29.59 billions in revenues (undiscounted) during its remaining life
(starting 1/1/2010).
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
1.2 List of Figures
2 Valhall, Norway, Introduction
3 Valhall, Norway, Geology and Formation
4 Valhall, Norway, Equity Partners
5 Valhall, Norway, Crude Oil, NGL and Gas Reserves
6 Valhall, Norway, Key Fiscal Terms
6.1 Contract Type
6.2 Royalty
6.3 Fees
6.4 Special Petroleum Tax
6.5 Taxation
7 Valhall, Norway, Infrastructure
7.1 Upstream Infrastructure
7.1.1 The Quarters Platform (QP)
7.1.2 The Drilling Platform (DP)
7.1.3 The Production Platform (PCP)
7.1.4 The Wellhead Platform (WP)
7.1.5 The Water Injection Platform (IP)
7.1.6 The Valhall Flank Platforms
7.2 Midstream Infrastructure
7.2.1 Pipeline
8 Valhall, Norway, Development Plan, Investment and Expenditure
9 Valhall, Norway, Crude Oil, NGL and Gas Production
10 Valhall, Norway, Field Economics
10.1 Valhall, Economic Assumptions
10.1.1 Forecast Commodity Prices
10.1.2 Inflation
10.1.3 Discount Rate and Representation of Cash Flows
10.1.4 Sensitivity
10.1.5 Access to the Economic Model
10.2 Valhall, Norway, Cash Flow Analysis
11 Valhall, Norway, Remaining PV Sensitivity Analysis
11.1.1 Remaining NPV Sensitivity to Discount Rates
11.1.2 Remaining NPV Sensitivity to Change in Commodity Prices and Production
11.1.3 Remaining NPV Sensitivity to Income Tax and Production Rate
12 Valhall, Norway, Summary Cash Flows
12.1 Valhall, Norway, Front End Load Due To Fiscal Policy
12.2 Valhall, Norway, Tax Liability
13 Appendix
13.1 Methodology
13.2 Coverage
13.3 Secondary Research
13.4 Primary Research
13.5 E&P Forecasts
13.6 Capital Costs
13.7 Exploration and Appraisal (E&A) Costs
13.8 Operating Costs
13.9 Expert Panel Validation
13.10 About GlobalData
13.11 Contact Us
13.12 Disclaimer
1.1 List of Tables
Table 1: Valhall, Norway, Key Asset Data, 2010
Table 2: Valhall, Norway, Field Reserves, January 2010
Table 3: Valhall, Norway, Exploration Wellbore(s), January 2010
Table 4: Valhall, Norway, Development Wellbore(s), January 2010
Table 5: Valhall, Norway, Historic Crude Oil, NGL, Gas Production and Forecast, 1982-2035
Table 6: Valhall, Norway, Commodity Price Assumptions, 2010-2035
Table 7: Valhall, Norway, Project Analysis Metrics, 2010
Table 8: Valhall, Norway, Remaining PV Sensitivity Analysis Over Discount Rate Vs. Commodity Price Change, in Million Dollars
Table 9: Valhall, Norway, Remaining PV Sensitivity Analysis over Commodity Price Change Vs Production Rate, in Million Dollars
Table 10: Valhall, Norway, Remaining PV Sensitivity Analysis at 10% Discount Rate over Income Tax Change Vs Production Rate, in Million Dollars
Table 11: Valhall, Norway, Asset Summary Cash Flows, Thousand USD, 1982-2035
Table 12: Valhall, Norway, Front End Load, Thousand USD, 1982-2035
1.2 List of Figures
Figure 1: Valhall, Norway, Location Map
Figure 2: Valhall, Norway, Overview of geophone array at sea floor and reservoir top and the wells.
Figure 3: Valhall, Norway, Equity Partners and Their Equity Stakes, 2010
Figure 4: Deck and hull of the Valhall platform
Figure 5: Valhall, Norway, platforms connected by bridges
Figure 6: Valhall, Norway, North Flank platform
Figure 7: Valhall, Norway, flank platforms connected to new production hotel via pipelines
Figure 8: Valhall, Norway, Production Hotel Platform
Figure 9: Valhall, Norway, Historic Crude Oil Production and Forecast, 1982-2035
Figure 10: Valhall, Norway, Historic NGL Production and Forecast, 1982-2035
Figure 11: Valhall, Norway, Historic Gas Production and Forecast, 1982-2035
Figure 12: Valhall, Norway, Economics, Post Tax Cash Flow vs. Gross Revenue, 1982-2035
Figure 13: Valhall, Norway, Remaining PV Sensitivity Analysis Over Discount Rate Vs. Commodity Price Change, in Million Dollars
Figure 14: Valhall, Norway, Remaining PV Sensitivity Analysis over Change in Production Vs. Commodity Price Change, in Million Dollars
Figure 15: Valhall, Norway, Remaining PV Sensitivity Analysis Over Income Tax Change Vs. Production Rate, in Million Dollars
Energy and Power
