Gideon Tadmor (photo PR)
Gideon Tadmor’s Navits closes a not bad year at all. The company’s financial reports published today indicate that revenues in 2022 jumped by 39% to approximately $120 million, and net profit jumped to approximately $49 million. One million barrels moved Navits from a profit of $3.9 million in 2021 to a net profit of about $49 million in 2022.
The partnership also reports that the development of the flagship project in Nanoda is proceeding according to the budget and the planned schedules, 43% of the development budget has actually been invested in it, and that the project is expected to begin production at the end of 2024, with the production of approximately 17 million barrels per year. Navitas announces for the first time for the Sea Lion project a capitalization flow of about 1.9 billion dollars for the Navitas part.
More in-
Navits Chairman Gideon Tadmor: “Navits concludes the year 2022 with excellent results and a significant increase in revenues and net profit. In parallel with the progress in the development of Shenandoah, we are working to promote the Sea Lion project, with the aim of reaching an investment decision in the project during the year 2024.”
During the year 2022 Navitas sold about 1.71 million barrels of oil at an average price of about $94 per barrel. Navits’ share of the production from the Bakskin reservoir was about 865 thousand barrels, similar to the volume of production of about 881 thousand barrels in 2021. At the same time, Navits’ onshore fields contributed about 843 thousand barrels, an increase of about 8% compared to the 2021 data, which is due to the implementation More drilling and increasing the rate of production in reservoirs.
The partnership’s EBITDA increased by 55% to approximately $76 million, compared to an EBITDA of approximately $49 million in 2021. The Bakskin project contributed approximately $54 million to the partnership’s EBITDA, compared to an EBITDA of approximately $36 million in 2021 2021. The onshore assets contributed to EBITDA approximately 32 million dollars, compared to EBITDA of approximately 24 million dollars in 2021.
During the month of February 2023, Navits completed the execution of 4 additional horizontal field drillings in the onshore Webster oil field. The drilling has been completed and connected to production. In addition, in the second quarter Navits will perform a fourth development drilling in the Bakskin North project.
Development works on the partnership’s flagship reservoir, the Shenandoah project (388 million barrels), are progressing according to the budget and in accordance with the planned schedule, with production from the project expected to begin at the end of 2024. By the time of the report, approximately 43% of the development work budget had been invested in the project, with a financial scope of About 770 million dollars out of the total development budget of 1.8 billion dollars. With the start of production from Shenandoah, the annual revenue of Navits is expected to jump to about 1.14 billion dollars, assuming a price of about 78 dollars per barrel of oil.
As part of the development work in the reservoir, the advanced drilling vessel of the project, Transocean Deepwater Atlas, began the execution of the four development and production wells in the project, at a cost of approximately 320 million dollars. This activity is in full swing with the completion of drilling expected in the third quarter of 2023. With the completion of project development work at the end of 2024, Shenandoah’s four wells are expected to produce approximately 80 thousand barrels of oil per day, with Navits’ share (49%) being approximately 39 thousand barrels a day.
The discounted cash flow for the significant Sea Lion reservoir (712 million barrels) in which it owns 65%, indicates a discounted cash flow value of approximately 1.9 billion dollars for the partnership’s share. The partnership is working to formulate and approve a new and efficient development plan for Phase I of the discovery and to promote development financing, in preparation for a final investment decision (FID) in the project, during the year 2024. At the same time, the Falklands government issued a statement of support for the development of the reservoir, with the establishment of joint work teams of Navits and representatives Falklands Government to advance the development plan.
Comments to the article(0):
Your response has been received and will be published subject to the system policy.
Thanks.
for a new comment
Your response was not sent due to a communication problem, please try again.
Return to comment