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6 Pages

Hess divests its 15.67% interest in Schiehallion to Shell


Hess divests its 15.67% interest in Schiehallion to Shell

Report summary

Hess has announced the divestment of its interests in the BP-operated Schiehallion field and the Schiehallion FPSO vessel in the UK West of Shetlands region. The consideration is undisclosed. Schiehallion is on the cusp of a major redevelopment programme, sanctioned in July 2011, that will see the installation of a new-build FPSO, new subsea infrastructure and an intensive drilling programme. The Quad 204 project will require US$3.3 billion of investment between 2013 and 2017, and push ...

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Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
    • Upside
    • Risks
  • Strategic rationale
    • Hess
    • Shell
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
  • Transaction details
    • Transaction details: Table 1
  • Upstream assets
    • Wood Mackenzie modelling assumptions for Schiehallion - production and capex (gross)
  • Deal analysis
    • Deal analysis: Table 1
    • Valuation of Schiehallion deal vs. other UK deals (oil focused, > US$200 million)
  • Upsides and risks
    • Commercial Asset Value Sensitivities (PV10)
  • Strategic rationale
    • Wood Mackenzie valuation (NPV10) of Shell UK portfolio, discounted to 2012 and 2017
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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