Norway starter kit for Talisman
Upstream, this week's issue
By Erik Means
Canadian independent Talisman Energy has made a strategic leap into the Norwegian sector with its $123 million purchase of BP's operating stake in the producing Gyda field and other North Sea assets.
The British supermajor, meanwhile, is scaling back its activities in Norway after disappointing results there and is targeting a NKr400 million ($51 million) budget cut. Oil workers' union Nopef, while gearing up for tough negotiations with BP, is happy to see Talisman take the reins at Gyda.
"We are positive so far," said Ingard Haugeberg, Nopef's employee representative in BP. "We have been assured that Talisman aims to operate in accordance with Norwegian standards," he said, adding that planned re-investment in Gyda will extend the field's production life, thereby securing jobs.
Talisman chief executive Jim Buckee said: "This acquisition offers us the opportunity to become a significant oil and gas producer in Norway and this is a natural extension of our North Sea strategy."
Buckee added that the purchase "fits Talisman's investment style: operatorship of a producing field and ownership in key infrastructure, with associated exploration and development opportunities, which will increase production and lower unit operating costs".
The acquisition, assuming Norwegian authorities give the green light to Talisman's debut in the country, includes a 61% stake and operatorship in production licence PL 019B, containing the Gyda field and integrated platform in blocks 2/1 and 7/12, as well as in the 43-kilometre, 12-inch export pipeline to the Ekofisk field.
The deal, to be backdated to 1 January 2003, will add about 18 million barrels of net proven reserves at a cost of $3.70 per boe excluding tax pools.
It will also give Talisman net production from Gyda of about 8000 barrels of oil equivalent per day -- 90% of which is 42 degree-API crude.
A planned reservoir rejuvenation programme in the field, which was brought on stream in 1990, is expected to add some 24 million boe and to boost Talisman's share of production from Gyda to over 20,000 boepd by 2006.
Also included in the package is a 45% interest in licence PL 019C within block 2/1, containing the Kark prospect.
Herein lies a potential carrot for the Canadian indie, as Kark's estimated 50 million barrels of oil in-place make it a prime tie-back candidate to Gyda. |
