"The cash flow from our production is still high in a historical perspective," says Petoro CEO Kristin Kragseth.
After a couple of years with abnormally high gas prices, the achieved gas price in the first quarter was 51 per cent lower than in the same quarter last year.
"Europe entered the winter season with full stockpiles of gas. The Continent experienced a relatively mild winter, which meant that gas consumption was lower than expected. This is an important factor that has affected price and revenues," Kragseth says.
Highest production since 2018
Production from the SDFI portfolio over the three first months of the year has not been this high since the same time in 2018, and Petoro is working closely with operators and licence partners to continue developing new and profitable production with the lowest possible emissions. Activity on the Norwegian shelf will remain high over the next few years, and this year, we are planning to invest about NOK 30 billion.
In January, the Ministry of Energy awarded 62 new production licences on the Norwegian shelf. Petoro is a partner in 20 production licences, eight of which in the Barents Sea.
"We're positioned as one of the most important players in the Barents Sea. There will be substantial activity here in the next few years, hopefully with exploration results that can add new volumes and synergy to field solutions such as Johan Castberg, Goliat and eventually also Wisting," Kragseth says.
Emission measures approaching 30 per cent reduction
Petoro recently published its sustainability report for 2023. Emissions are trending the right way, and over the next few years, the company is planning to invest significant sums in emission-reducing measures on existing installations. The goal is to reduce the SDFI's share of scope 1 emissions from the portfolio by 55 per cent by 2030, with a long-term goal of achieving near zero emissions by 2050. The measures adopted so far will reduce emissions by a total of close to 30 per cent, compared with the reference year 2005.
"We need to electrify our activities in order to achieve these ambitious goals. Access to power from shore is currently under pressure, and industry leaders have partnered with the authorities in an important effort to implement systems that provide the best possible overall solution for the power system, the industry and the environment. All of the choices we make have consequences," says Kragseth.
Result as of the 1st quarter
The first quarter saw a total of four serious incidents in the SDFI portfolio, which yields a serious incident frequency of 0.57 over the last 12 months, which is on par with the first quarter of 2023. The personal injury frequency is 4.1, compared with 3.9 in the same period last year.
Net cash flow to the state from the SDFI as of the 1
st quarter of 2024 totalled NOK 60 billion. Total production amounted to 1,119 thousand barrels of oil equivalent per day (kboed), an increase of 31 kboed compared with the same period last year. Gas production amounted to 121 million standard cubic metres (mill. scm) per day, up five per cent compared with the first quarter of last year. The average realised gas price was NOK 3.71 per scm, compared with NOK 7.61 in the same period last year. Liquids production totalled 357 kboed, a reduction of 8 kboed compared with the first quarter of 2023. The average realised oil price was USD 85, compared with USD 82 per barrel in the same period last year.
Press contact
Ørjan Heradstveit
Head of Communications
+47 917 78 161
orjan.heradstveit@petoro.no
