"Foinaven, United Kingdom, Commercial Asset Valuation and Forecast to 2021" Published

Aug. 27, 2010 - PRLog -- Foinaven is the first deepwater oil field developed in the Atlantic Margin in UK at an average depth of 450m. The field is located at 190 km west of Shetland Islands in Blocks 204/19 and 204/24. The field was discovered in 1992 and sanctioned in 1994.

BP is the operator and majority stakeholder in the field. The other major partners include Marathon Oil Corporation and Marubeni North Sea Limited. Majority of the reserves lie in the main Foinaven Field. The satellite fields include, East Foinaven, T35 and T25 accumulations.

The crude oil is sweet crude with API gravity of 26 degrees and sulfur content of 0.37% by weight and can be benchmarked to Brent Crude.

The total oil in place is estimated at 1,070 million barrels of oil and ultimate recoverable were estimated at 200 million barrels initially. The total recoverable reserves doubled to 4,100 million barrels due to combined activities like infield drilling and enhanced oil recovery techniques by 2003. The estimated life of the field has also increased from 11 to 24 years.

The field commenced the production in 1997 and the Phase 1 drilling was completed in 2000. Foinaven reached its peak in 2002 at 37.6 million barrels of oil and since has been on decline. Oil from the Foinaven field is produced using floating production storage and offloading vessel - The Petrojarl Foinaven.

The field is expected to generate $17.29 billion in gross revenues during its useful life of about 24 years and is expected to yield an IRR of around 13.66%.

Scope

* The report provides detailed information on oil and gas production, infrastructure, reserves, geology, operator and equity partners and the latest fiscal terms applicable to the asset and provides its fair value (Remaining Net Present Value) based on remaining reserves, forecast production, capital and operational costs, fiscal regime and commodity prices.
* The report also provides additional valuation parameters like Internal Rate of Return (IRR), Profitability Index (PI), Pay Back (discounted and undiscounted), Entitlement Production (EP) and Working Interest (WI) to enhance your decision making process.
* This report provides detailed sensitivity analysis of the remaining NPV with changes in the commodity prices, discount rate, production and key fiscal terms.
* Detailed cash flows over the life of the asset are included in the report. These cash flows cover a wide range of calculations related to various payments to the government/licensing authority.
* Interactive Excel models can be used to derive custom valuations, sensitivities and cash flows based on the specific inputs by the user in the model. These custom inputs vary from production data, cost information, price information and fiscal terms information.

Reasons to buy

* Make well informed investment decisions based on detailed operational analysis and cash flow forecasts
* Estimate the fair value of your future investment under different economic and fiscal conditions
* Value a prospective investment target through a comprehensive analysis using focused forecasting and valuation methodologies.
* Supporting interactive excel model will enhance your decision making capability in a more rapid and time sensitive manner
* Evaluate how the changes in the country's fiscal policies impact the cash flows and the present value of the asset

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Partial Table of Contents:

1 Table of contents 2
1.1 List of Tables 3
1.2 List of Figures 3
2 Foinaven, United Kingdom, Introduction 4
3 Foinaven, United Kingdom, Geology and Formation 6
4 Foinaven, United Kingdom, Equity Partners 8
5 Foinaven, United Kingdom, Crude Oil Reserves 9
6 Foinaven, United Kingdom, Key Fiscal Terms 10
6.1 Contract Type 10
6.2 Key Fiscal Terms 10
6.2.1 Royalty 10
6.2.2 Bonuses 10
6.2.3 Rentals 10
6.2.4 Fees 10
6.2.5 Taxation 10
6.2.6 Petroleum Revenue Tax (PRT) 10
6.2.7 Deductions 11
6.2.8 Capital Allowance 11
6.2.9 Withholding Tax 12
6.2.10 Ring Fence 12
7 Foinaven, United Kingdom, Infrastructure 13
7.1 Upstream Infrastructure 13
7.1.1 Surface Facilities 13
7.1.2 Subsea Facilities 13
7.1.3 Floating Production, Storage and Offloading Vessel 13
7.2 Midstream Infrastructure 15
8 Foinaven, United Kingdom, Development Plan 16
9 Foinaven, United Kingdom, Crude Oil & Associated Gas Production 17
10 Foinaven, United Kingdom, Field Economics 19
10.1 Foinaven, United Kingdom, Economic Assumptions 19
10.1.1 Forecast Commodity Prices 19
10.1.2 Inflation 19
10.1.3 Discount Rate and Representation of Cash Flows 19
10.1.4 Sensitivity 19
10.1.5 Access to the Economic Model 19
10.2 Foinaven, United Kingdom, Cash Flow Analysis 20
10.3 Foinaven, United Kingdom, Remaining PV Sensitivity Analysis 21
10.3.1 Remaining NPV Sensitivity to Discount Rates 21
10.3.2 Remaining NPV Sensitivity to Change in Commodity Prices and Production 22
10.3.3 Remaining NPV Sensitivity to Income Tax and Production Rate 23
11 Foinaven, United Kingdom, Summary Cash Flows 24
11.1 Foinaven, United Kingdom, Front End Load Due To Fiscal Policy 25
11.2 Foinaven, United Kingdom, Tax Liability 26
12 Appendix 27
12.1 Methodology 27
12.2 Coverage 27
12.3 Secondary Research 27
12.4 Primary Research 28
12.5 E&P Forecasts 28
12.6 Capital Costs 29
12.7 Exploration and Appraisal (E&A) Costs 29
12.8 Operating Costs 29
12.9 Expert Panel Validation 29
12.10 About GlobalData
12.11 Contact Us
12.12 Disclaimer

1.1 List of Tables

Table 1: Foinaven, United Kingdom, Key Asset Data, 2010 4
Table 2:  Foinaven, United Kingdom, Field Reserves, January 2010 9
Table 3:  Foinaven, United Kingdom, Well Details 14

Full Table of Contents is available at:
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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.