Weekly news, topics and discussion
This week, NCS February production was broadly in line with the NOD’s expectations, with total output flat MOM but down 2.4% YOY. Aker BP showed solid January production, while Equinor, Vår Energi, OKEA and DNO showed declines MOM. Halten East is now on stream, but its slow ramp-up limits Vår Energi’s 2025 uplift to ~5kboed, reinforcing the downside risk to its 330–360kboed guidance. Also, DNO successfully placed a new USD600m bond (8.5% coupon) to refinance DNO04 and for general corporate purposes.E&P sector (DNB Markets) – NCS February production figures. The Norwegian Offshore Directorate’s (NOD) preliminary NCS figures for February showed liquids production of 1,938kboed (in line with its forecast) and gas production of 355mcm/d (3.8% above its estimate). Overall production was 4.17mmboed, flat MOM (1.8% above its forecast), but down 2.4% YOY. Aker BP reported solid production in January, while Equinor, Vår Energi, OKEA and DNO all reported production down MOM. See full report
Halten East on stream. Equinor’s Halten East field has started production on time and on budget. The tie-back to Åsgard B is expected to add ~20kboed net to Vår Energi at the plateau (2026e), but due to a gradual ramp-up, the 2025 impact will likely be limited to ~5kboed. The development includes five subsea templates and six wells, with only one currently producing. Phase two is planned for 2029. Due to the slow ramp-up and phasing of wells, the incremental impact on 2025 production will likely be limited to only ~5kboed for Vår Energi (versus production contribution at plateau of ~20kboed in 2026). While this is not new information, we are not sure whether consensus has modelled this accordingly. Moreover, Johan Castberg is yet to start producing (was “weeks away from start-up” in mid-February). Vår Energi’s 2025 production guidance is 330–360kboed (DNBe: 346kboed, consensus 352kboed), with the risk skewed to the downside, in our view.
DNO completes USD600m bond placement. Last Friday, DNO announced the successful completion of a new USD600m five-year senior unsecured bond with an 8.5% coupon rate. The new bond has terms largely similar to DNO05. Proceeds are to be used to refinance the USD350m DNO04 bonds maturing in September 2026 and for general corporate purposes. DNB Markets acted as Global Coordinator and Joint Bookrunner in the recent bond issue by DNO ASA.
Aker BP ASA engages in the exploration, development, and production of petroleum resources on the Norwegian Shelf. In addition, Co. has a separate Johan Sverdrup business unit to manage its interest.
BW Energy Ltd. BW Energy Limited is a Bermuda-based oil and gas company engaged in oil and gas exploration and production activities. The Company is involved in the acquisition, development and production of oil and natural gas fields. It has a diversified portfolio of production and development assets offshore West Africa and Brazil, and holds interests in three hydrocarbon licenses in Gabon, Brazil and Namibia. Its Dussafu Marin Permit and the associated Ruche Exclusive Exploitation Area (EEA) production license are located approximately 50 kilometers (km) off the coast of Gabon. The Ruche EEA covers an area of approximately 850 square kilometers. The Maromba discovery is located approximately 100 kilometers offshore in the southern part of the Campos Basin. The Kudu gas field is some 130 km offshore and covers an area approximately 4,500 square kilometers. The Company's subsidiaries include BW Energy Dussafu B.V., BW Energy Gabon Pte Ltd, BW Energy Gabon SA and BW Energy Holdings Pte Ltd.
DNO is a Norwegian exploration and production company focused on the Middle East and North Africa. Co. holds stakes in oil and gas blocks in various stages of exploration, development and production, both onshore and offshore, in the Kurdistan region of Iraq, Yemen, Oman, the United Arab Emirates, Tunisia and Somaliland.
Equinor is engaged in oil and gas exploration and production activities. Co. is primarily focused on exploration, development and production of oil and gas on the Norwegian continental shelf (NCS). Co.'s operations are organized into four segments. The Development and Production Norway and Development and Production International segments explore, develop, produce and extract crude oil, natural gas and natural gas liquids. The Marketing, Processing and Renewable Energy segment markets, trades, transports and processes oil and natural gas and renewable energy. The Other segment consists of global well and project delivery, research and develpoment, and business development.
Noreco Energy Company is a Norwegian exploration and production company engaged in the exploitation, development, and acquisition of oil and gas fields. Co.'s activities are located in Norway, Denmark and the U.K.
Okea ASA is a Norway-based oil company engaged in the oil and gas exploration and production industry. The Company contributes to the value creation on the Norwegian continental shelf with development and operation systems through the utilization of the result of previous and ongoing exploration activities in order to bring undeveloped oil on stream in strategic cooperation with service companies. Its services do not involve the exploration for petroleum. The Company operates an office in Trondheim, Norway.
Panoro Energy is an international independent oil and gas company engaged in the exploration and production of oil and gas resources in Brazil and West Africa. In Brazil, Co. participates in a number of oil and gas licenses located in the Santos basin outside the south-east coast of Brazil and in the Camamu-Almada basin in the state of Bahia. In West Africa, Co. participates in a number of licences in Nigeria and Gabon. As of Dec 31 2013, Co.'s commercial production is from the Manati field in Brazil.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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