AGR evaluates reserves and resources on behalf of new entrant entering the Norwegian Continental Shelf through an acquisition

Erik Lorange

Japan Petroleum Exploration Co., Ltd (JAPEX), a well established global energy enterprise, was strategizing its entry into the Norwegian continental shelf via an acquisition approach.

AGR’s Reservoir Management & Asset Evaluation team were hired to evaluate full field development plans and exploration potential on multiple producing licenses before the multi-million dollar investment was made.

The utilisation of AGR’s expertise, comprehensive subsurface knowledge, and unbiased reserves and resources assessments, including geophysics, geology, reservoir engineering, drilling and field development, significantly empowered the client to arrive at a thoroughly informed and data-driven investment choice.

This, in turn, led JAPEX to establish a joint venture (JV) with an emerging Norwegian full-cycle Exploration and Production (E&P) entity, Longboat Energy. The collaboration was materialised through a monetary infusion of up to US$50 million into the JV, securing JAPEX a 49.9% stake in the newly formed joint venture Longboat JAPEX Norge.

The new joint venture owns five main assets:

• Two discoveries in the North Sea (Kveikje and Oswig)
• One discovery and on prospect in the Norwegian Sea (Egyptian Vulture and Velocette)
• One discovery in the Barents Sea (Rødhette)

Erik Lorange

VP Reservoir Management

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KEY BENEFITS DELIVERED

AGR provided an independent assessment of the initial petroleum resources, technically recoverable resources, and potential field development pathways, encompassing detailed estimates of drilling expenses and project-related risks.

The insights from the AGR report, coupled with the client’s internal evaluation, played a pivotal role in shaping the acquisition verdict. Subsequently, an accord was reached between the two firms, culminating in the creation of a collaborative entity under the joint venture arrangement. As a result, JAPEX has entered the Norwegian continental shelf through strategic acquisiton.

CAPABILITIES AND SOLUTIONS AGR DELIVERED

– Evaluation of resources potential
– Exploration potential
– Drilling time, cost and risks
– Existing field development solutions and future risks and value (SWOT), incl organisation competence evaluation

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