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6 Pages

Tellus takes 15% of Gina Krog from Total in shrewd Norway deal


Tellus takes 15% of Gina Krog from Total in shrewd Norway deal

Report summary

In an uncommon structure for deals in Norway, Tellus Petroleum (a subsidiary of Sequa Petroleum) has acquired a 15% stake in the Gina Krog field from Total. Tellus will pay a completion payment of US$173 million (NKr 1.4 billion) to cover 15% of the total project costs for 2015 which effectively makes the consideration US$0. However Total will retain the tax balances related to all pre-2015 investment on Gina Krog thus increasing the value of the deal to the French Major.

What's included?

This report includes 1 file(s)

  • Tellus takes 15% of Gina Krog from Total in shrewd Norway deal PDF - 310.40 KB 6 Pages, 6 Tables, 2 Figures

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
    • Gina Krog Area (15%)
    • Technical reserves - Gina Krog East 3 (15%)
  • Deal analysis
  • Upsides and risks
    • Upside
    • Risks
  • Strategic rationale
    • Tellus
    • Total
  • Oil & gas pricing and assumptions

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

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Share of depreciation held by Total through tax balance retention
    • Deal analysis: Table 1
    • Deal analysis: Table 2
  • Upsides and risks
  • Strategic rationale
    • Tellus' Norwegian production and cash flow pre- and post-deal
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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