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8 Pages

Commercialising Johan Castberg's 580 million barrels of Arctic oil


Commercialising Johan Castberg's 580 million barrels of Arctic oil

Report summary

Marginal economics have led operator Statoil to review the development concept at the 580 million barrel Johan Castberg Area.  An inability to commercialise such a large Arctic development could be detrimental to future activity in the area. Lower than expected reserves have resulted in a post-tax internal rate of return (IRR) of only 10.4%. This is below the average 17% IRR Wood Mackenzie expects Statoil to achieve from their future probable developments.  

What's included?

This report includes 1 file(s)

  • Commercialising Johan Castberg's 580 million barrels of Arctic oil PDF - 488.69 KB 8 Pages, 0 Tables, 4 Figures

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.

  • Executive Summary
  • Marginal economics & exploration disappointment
    • Johan Castberg Area
  • Focus on cost reduction – the alternative development scenarios
    • Development scenario metrics
    • Development scenario results
  • Results and next steps
    • Statoil's probable projects with Capex over US$1 billion
  • Appendix
    • Definition of probable development
    • Economic assumptions
      • Cash Flow
      • Discount rate and date
      • Inflation rate
      • Oil price
      • Gas price
      • Carbon price
      • Exchange rate
      • Fiscal terms

In this report there are 4 tables or charts, including:

  • Executive Summary
  • Marginal economics & exploration disappointment
    • Commercialising Johan Castberg's 580 million barrels of Arctic oil: Image 1
  • Focus on cost reduction – the alternative development scenarios
    • Commercialising Johan Castberg's 580 million barrels of Arctic oil: Image 2
    • Commercialising Johan Castberg's 580 million barrels of Arctic oil: Image 3
  • Results and next steps
    • Commercialising Johan Castberg's 580 million barrels of Arctic oil: Image 4
  • Appendix
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