Volve, Norway, Commercial Asset Valuation and Forecast to 2013

http://www.reportsandreports.com/market-reports/volve-norway-commercial-asset-valuation-and-forecast-to-2013/ 

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Norway Market Research 


Volve is a small offshore field, 200km from Stavanger in Southern Norway. The field lies at a water depth of 80m and the reserves lie at a depth of 2,750 to 3,120m.

The field was discovered in 1993 and the development plan was approved in 2005. The field started producing in 2008 and is expected to produce till 2013. The total recoverable reserves are estimated at 85.6 million barrels of crude oil and 38,830 MMcf of associated gas.

Statoil Petroleum AS is the operator of the field and majority stakeholder with 59.60% interest. The other partners include ExxonMobil E&P Norway and Bayerngas Produksjon Norge AS.

The Volve crude oil is light sour crude with density of 29.8 ° API and sulfur content 1.72%. The oil is produced using Maersk Inspirer Jack-up Rig. This rig acts as drilling as well as production and processing facility. The oil is transported using shuttle tankers, and gas through a pipeline.

The field is expected to generate $6.3 billion in gross revenues over its useful life of six years. The asset IRR is expected at 75.63%.

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 4
1.2 List of Figures 4

2 Volve, Norway, Introduction 5

3 Volve, Norway, Geology and Formation 6

4 Volve, Norway, Equity Partners 7

5 Volve, Norway, Crude Oil and Associated Gas Reserves 8

6 Volve, Norway, Key Fiscal Terms 8
6.1 Royalty 8
6.2 Fees 8
6.3 Special Petroleum Tax 9
6.4 Taxation 9
6.5 Carbon Dioxide Tax 9
6.6 Deductions and Depreciation 9

7 Volve, Norway, Infrastructure 9
7.1 Upstream Infrastructure 10
7.1.1 Jackup Rig- Maersk Inspirer 11
7.2 Midstream Infrastructure 11
7.2.1 Floating Storage Unit- Navion Saga 11

8 Volve, Norway, Development Plan 11

9 Volve, Norway, Crude Oil and Associated Gas Production 12

10 Volve, Norway, Field Economics 13
10.1 Volve, Economic Assumptions 13
10.1.1 Forecast Commodity Prices 13
10.1.2 Inflation 13
10.1.3 Discount Rate and Representation of Cash Flows 13
10.1.4 Sensitivity 13
10.1.5 Access to the Economic Model 13
10.2 Volve, Norway, Cash Flow Analysis 14
10.3 Volve, Norway, Remaining PV Sensitivity Analysis 15
10.3.1 Remaining NPV Sensitivity to Discount Rates 15
10.3.2 Remaining NPV Sensitivity to Change in Commodity Prices and Production 16
10.3.3 Remaining NPV Sensitivity to Petroleum Revenue Tax and Production Rate 17

11 Volve, Norway, Summary Cash Flows 18
11.1 Volve, Norway, Front End Load Due To Fiscal Policy 19
11.2 Volve, Norway, Tax Liability 20

12 Appendix 21
12.1 Methodology 21
12.2 Coverage 21
12.3 Secondary Research 21
12.4 Primary Research 21
12.5 E&P Forecasts 22
12.6 Capital Costs 22
12.7 Exploration and Appraisal (E&A) Costs 22
12.8 Operating Costs 23
12.9 Expert Panel Validation 23
12.10 About GlobalData
12.11 Contact Us
12.12 Disclaimer

1.1 List of Tables

Table 1: Volve, Norway, Key Asset Data, 2010 5
Table 2: Volve, Norway, Field Reserves, January 2010 8
Table 3: Volve, Norway, Development Wellbores (WB) 10
Table 4: Volve, Norway, Exploration Wellbores (WB) 11
Table 5: Volve, Norway, Historic and Forecast Production, 2008-2013 13
Table 6: Volve, Norway, Commodity Price Assumptions, 2010-2013 13
Table 7: Volve, Norway, Project Analysis Metrics, 2010 14
Table 8: Volve, Norway, Remaining PV Sensitivity Analysis Over Discount Rate Vs. Commodity Price Change,  in m $ 15
Table 9: Volve, Norway, Remaining PV Sensitivity Analysis over Commodity Price Change Vs Production Rate, in m $ 16
Table 10: Volve, Norway, Remaining PV Sensitivity Analysis at 10% Discount Rate over SPT Change Vs Production Rate, in m $ 17
Table 11: Volve, Norway, Asset Summary Cash Flows, 000’$, 2006-2013 18
Table 12: Volve, Norway, Front End Load, 000’$, 2006-2013 19
Table 13: Volve, Norway, Tax Liability Estimations, 000’$, 2008-2013 20

1.2 List of Figures
Figure 1: Volve, Norway, Location Map 6
Figure 2: Volve, Norway, Illustrative Diagram of Reservoir and Geological Cross-Section 7
Figure 3: Volve, Norway, Current Equity Details, 2010 8
Figure 4: Volve, Norway,  Jack-up Rig, Maersk Inspirer 10
Figure 5: Volve, Norway, Crude Oil, Historic Production and Forecast, 2008-2013 12
Figure 6: Volve, Norway, Associated Gas, Historic Production and Forecast, 2008-2013 12
Figure 7: Volve, Norway, Gross Revenue Versus Tax Cash Flow Analysis, 2006-2013 14
Figure 8: Volve, Norway, Remaining PV Sensitivity Analysis Over Discount Rate Vs. Commodity Price Change,  in m $ 15
Figure 9: Volve, Norway, Remaining PV Sensitivity Analysis over Change in Production Vs. Commodity Price Change, in m $ 16
Figure 10: Volve, Norway, Remaining PV Sensitivity Analysis Over SPT rate Change Vs. Production Rate, in m $ 17

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