Small field policy
For all information and data on Exploration and Production in the Netherlands, see the Netherlands Oil and Gas Portal
www.nlog.nl & www.ebn.nl
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Opportunities in Fallow Acreage
Profit margins of Dutch small fields are attractive
2006 2007 2008 2009 2010 2011 2012
Margins of small field production
30 25 20 15 10
5 0
- Findings costs: mainly geology & geophysics (G&G) costs (including seismic surveys and expensed dry exploration wells)
- Depreciation: on a unit-of-production (UOP) basis (depreciation over successful exploration wells that are activated is included in this category)
- Production costs: including transport, treatment, current and non-current costs
Price (€ cent) per m
3
Net profit
Taxes
Production costs Depreciation
Finding costs
Number of prospects per area Prospect expectation volume (BCM) per area
fallow offshore fallow onshore open offshore open onshore active offshore active onshore 767
52 193 101 76
515 225
106
18 17 10 65
Annual publication of provisional
classification (April) on www.nlog.nl
Publication of definite
classification (1st of July)
9 Months time
interval to submit work plan by main licensee
(July–April)
3 Months time
interval to submit activity plan by
co-licensee (April–July)
Submit activity plan by third parties
Several opportunities, including stranded fields and prospects are located in fallow and open acreage
Fallow in action: In 2013 first Fallow Acreage
Application by a third party
• Small Field Policy allows good returns for operators.
• Profit margins are at an attractive rate of around 30% on average.
• Guaranteed offtake at market
conformable prices.
