RE: Volumentrics6 Feb 2022 01:02
1 USD is about 9 NOK at the moment. ‘Normal” is like 6,5 to 7,5 NOK / USD.
Now compare this to what our TXP development costs will be on land compared Aker BP development cost offshore. Look at the NPV. I put the article text into google translate, it’s a Norwegian article.
Around 175 million barrels of oil, investments of NOK 24 billion and a net present value of NOK 4.9 billion.
These are the key figures that can be calculated for Kjell Inge Røkke's oil company Aker BP in the large upcoming Wisting oil field in the Barents Sea.
Aker BP secures a 35 percent stake in Wisting when it merges with Lundin Energy later this year, which in recent years has acquired a significant stake in the field.
(So 175 million BOO, 2.67 billion USD to develop, 540 million USD NPV after expenses for Aker BP. What does TXP Royston NPV look like at say 100 million BOO on land, with extremely low development cost, right next to a pipeline? Pretty ****in good is what it looks like!)
On Tuesday, Equinor and the partnership at Wisting released the impact assessment for the field, and it is from there that you can retrieve figures that you can calculate back to Aker BP.
For the field as a whole, Equinor and the other companies expect the following:
It will cost between NOK 60 and 75 billion to expand and create 28,000 man-years in Norway
It is expected to contain almost 500 million barrels of oil
The operation will cost NOK 1.7 billion annually and create 300 man-years
There is not enough gas in the field to operate the platform on gas power. Importing gas will be too expensive, according to the companies, and thus they will use power from land. A cable from Finnmark of 340 kilometers is planned, on which 80 megawatts will be drawn for normal operation
The present value of the project is estimated at NOK 40 billion - ie the current value of future revenues, less costs. Then the state's standard discount rate of seven per cent has been used
Of the present value of 40 billion, the companies estimate that just over 13 billion goes to them and that more than 26 billion goes to the state through taxes
PS! The oil companies have higher return requirements and interest rates than the government.
The final figures and calculations for investments and balance sheet prices in the project are expected in the development plan (PDO) which will be handed over to the Norwegian authorities this autumn.
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