Strong total production, weaker gas prices

Total production from the government’s direct participation in Norway’s oil and gas business is still high, but price fall for gas and reduced oil production weakened first quarter financial results . Net cash flow to the state was 30.1 billion NOK, a reduction of 3.1 bn bn from same quarter last year. Petoro’s market director Laurits Haga, believes that after short term uncertainty, demand will increase and the market balance for gas in Europe will strengthen. Finance director Marion Svihus said the 14 per cent reduction of oil production underlines the need for a turnaround and re-vitalisation of the Norwegian contintental shelf.