Monday 29 August 2016, an upcoming crew change at the NCS was announced by ONS Conference Committee Chair Mr. John Knight in his opening address at the ONS Conference. Under the surface a lot of developments had been going on for a while, and it was time for a public debate on the underlying changes that was on its way.
“The transition will require adaptability and realism in public debates about what diversity on the NCS really means”, Mr. Knight said.
It was pointed at the fact that some of the IOC`s and larger companies will be leaving Norway – via sell out, restructuring or alternative business models.
“Some traditional larger companies and IOCs have already left and others this very year have not left but rather merged their businesses to become minority investors in a different business model. I believe that the financial character of new companies and the expectations of new types of financial investors in the NCS will be different during a mature phase”.
Since then, this has become a reality and many major deals have been done. New companies have entered the shelf with a clear objective to invest, grow and
create future value for its shareholders and the Norwegian State. Examples of transactions are Carlyle backed Neptune buying Engie, Centrica and Bayerngas merger to Spirit Energy and ExxonMobil selling their operated business to Point Resources. This had lead to a diversity in types of players. The majors are still present but have chosen different business models at the NCS – for now. ONS perceives this business development as an opportunity, rather than a threat to the NCS.
“That transition will require agility, adaptability and foresight from all stakeholders, not just around the current important issue of operating and development cost and efficiency”, John Knight argued in his 2016 speech.
Take a deep dive into this topic at the ONS Conference sessions “Innovate NCS.” Tuesday 28 August, and “Financing the energy industry. All in?” Wednesday 29 August. See the full list of speakers here.
We are excited to work with 26 E&P companies – and to welcome Neptune Energy, Spirit Energy and Point Resources as exhibitors this year. Get ready to meet the new kids on the block at ONS 2018!