Daily Archives: October 5, 2011
The Arctic Scientific Center planned to be set up by the Russian Rosneft oil giant jointly with the US ExxonMobil Corporation will become sort of a technological core for developing the region’s ice shelf. Pursuant to the strategic partnership agreement signed earlier, the Russian and American companies will have 66.7 and 33.3 percent interests respectively in the future joint venture.
The new scientific center is meant to study the climate and geology of the Arctic, engineer icebreakers and drilling platforms, as well as engage in all shelf cooperation-related projects.
The region faces serious yearlong development, given an estimated one third of the world’s natural resources originating from the Arctic Ocean floor. The shelf is especially rich in coal, gold, copper, nickel, tin, platinum and manganese, with the region’s hydrocarbon fields holding up to 30 and 13 percent of global gas and oil reserves.
It is clear that one company cannot cover the development of all these deposits single-handedly, which requires cooperation with foreign specialists. According to partner of the RusEnergy consulting company Mikhail Krutikhin, the project has an essential economic aspect:
“ExxonMobil possesses enough shelf exploration technology and experience; it cooperated with Russia on the Sakhalin-1 project. Any opportunity to get access to new deposits and develop them appears more than attractive for any international company of this class,” says Mikhail Krutikhin.
One should realize, however, that exploration efforts on the Russian shelf will also require a specific approach, stresses oil investment expert Dmitry Alexandrov:
“In general, no one can be deemed highly experienced in carrying out geologic exploration under such conditions, given that the Russian Arctic differs much from what we observe in Alaska. Russia finds it particularly important to cooperate with a large foreign company in order to adopt its knowledge of shelf activities. We are dealing with the shared financial risks on the one hand and high-level technological solutions on the other,” Dmitry Alexandrov points out.
One should also bear in mind that the Arctic is a region attractive for all oil giants, the expert adds:
“The shelf’s resource base arouses interest of many foreign companies. Giants like ExxonMobil, Shell, BP, ConocoPhillips and Statoil have insufficient resource bases and always seek to engage in high-potential projects,” Dmitry Alexandrov says in conclusion.
The Arctic center is expected to absorb some $500 or 600 million, with overall Rosneft and ExxonMobil investment estimated at $200-300 billion. The total economic impact may reach half a billion dollars.
Partnership between the Russian and American giants is not only limited to Arctic projects. ExxonMobil may take part in exploring an area of the so-called Tuapse Trough in the Black Sea, while Rosneft is likely to get access to oil deposits in the Gulf of Mexico, Texas and Canada.
- Russia: Rosneft Gets Clearance to Buy More Offshore Assets in the Arctic (mb50.wordpress.com)
- Rosneft hooks up with ExxonMobil on Arctic and Black Sea development (rt.com)
- ExxonMobil strategic agreement puts Rosneft on global stage (rt.com)
- ExxonMobil clinches Arctic oil deal with Rosneft (guardian.co.uk)
The management has an excellent track record of establishing businesses from the concept stage and adding value for shareholders
SeaEnergy PLCs (earlier Ramco Energy PLC) strategic approach to growth entails entering new businesses at an early stage when the need for capital is low and exiting these ventures when the right value is attained. The company, which was incorporated with focus on oil services, evolved into| an energy investment company with interest in oil and gas assets. SeaEnergy is currently also focusing on the development of its offshore wind service business, SeaEnergy Marine. In line with its strategy, the company has successfully monetized its business interests in the past. It liquidated its 2.0825% interest in the Azeri Chirag Guneshli (ACG) field in Azerbaijan for USD150 million during 2000 and divested its 80.13% stake in SeaEnergy Renewables Limited (SERL) for a cash consideration of £38.6 million in 2011.
SeaEnergy is venturing into services related to the installation, operation and maintenance (O&M), and support of wind turbines through SeaEnergy Marine. It will stand out in terms of efficiency and cost-effectiveness. Offshore wind capacity in Europe is estimated to rise from 2.6GW at the end of 2010 to 43.3GW by 2020. This is likely to create massive demand for vessels that can facilitate the installation and O&M of wind turbines. The industry is currently facing a dearth of right-fit vessels that can execute these activities efficiently. For instance, wind farm owners in UK currently depend on workboats that operate at a maximum wave height of 1.5 meters and at a distance of 60 miles from shore, severely limiting their usefulness for wind farms now in development. The huge gap between demand and supply reflects the opportunities for growth in the offshore wind energy sector.
SeaEnergy Marine – A one-stop-shop for offshore energy sector
SeaEnergy Marine plans to integrate all services that offshore wind farm owners/developers may require. The company’s state-of-the-art vessels will shorten the installation cycle and increase accessibility for O&M. In addition, SeaEnergy Marine’s vessels will offer these services at very competitive rates, making the economics of operation quite favourable for its customers.
Past experience, established business model increase probability of success
SeaEnergy Marine benefits from the management’s experience in the offshore wind energy sector, especially the exposure gained while working with SERL. Moreover, the business model is well established. SeaEnergy Marine is also actively submitting tenders for contracts with major offshore wind companies.
The Discounted Cash Flow approach yielded a fair value of GBp50.5 per share, based on a cost of equity at 14.48%, inclusive of an additional risk premium of 8% as the company is still in the inception phase. As the marine business will gradually materialise, the additional premium will be faded out over time , providing further upside. In addition, our fair value excludes current (and further) upside from the O&G assets.
- Wind Energy Update: Offshore wind cables – help or hindrance (prweb.com)
- SeaTwirl puts a new spin on offshore wind turbines (gizmag.com)
- Offshore wind company sues province for $2.25 billion (cbc.ca)
- US offshore wind coalition formed (businessgreen.com)
- Offshore wind farms are good for wildlife, say researchers (guardian.co.uk)
- New offshore turbine design to create and store energy (physorg.com)
September 5th, 2011, Det norske oljeselskap ASA presented a plan for development and operation (PDO) of Jette to the Minister of Petroleum and Energy, Ola Borten Moe. The PDO was submitted on behalf of the partners in the Jette Group, which in addition to Det norske as operator, includes Petoro, Dana Petroleum and Bridge Energy.
Aldous Senior Vice President Projects, Bård Atle Hovd, says this is an important step towards developing Jette.
- We have now signed the third and final contract for the development phase. As soon as we receive the Ministry´s approval, we will embark on our first field development. We wish for a fast track development, enabling us to produce oil from Q1 2013
Jette is located in blocks 25/7 and 25/8, in the mid part of the North Sea. The field, which lies at a depth of 127 meters, will be produced with two horizontal wells, tied back to the Jotun floating production, storage and offloading vessel (FPSO).
Det norske has signed supplier agreements with three contractors. Cameron has been selected to supply the subsea production system. They will, amongst other, fabricate the X-mas trees and protective structures.
Subsea 7 will be responsible for engineering, procurement, fabrication and installation of a 6 kilometer flexible flowline and jumpers, installation of a 6 kilometer integrated services umbilical, X-mas trees and protective structures. They will also supply diver assisted tie-ins.
Aker Solutions is given the assignment to fabricate the 6 kilometer integrated services umbilical.
- Det Norske submits PDO for Jette (norwayexploration.wordpress.com)
- Re-inventing subsea intervention to keep economics above water (mb50.wordpress.com)
- Det norske provides update on Total-operated Norvarg gas discovery in the Barents Sea (norwayexploration.wordpress.com)
- Det norske to drill Ulvetanna Prospect in Block 3/4, southern North Sea (norwayexploration.wordpress.com)
- New discovery near Norne (Skaugumsåsen) (norwayexploration.wordpress.com)
- Huge North Sea oil discovery to boost region’s oil sector (tradingfloor.com)
- Another potential extension to Aldous (norwayexploration.wordpress.com)
- Norway oil, gas find may be its third biggest (theglobeandmail.com)
- Norway’s Biggest Oil Find Since ’80s Sends Lundin to Record (businessweek.com)
- Statoil: North Sea find may be worlds biggest in 2011 (theglobeandmail.com)