“We note that the positive profit development we saw in the first quarter has continued into the second quarter,” says Petoro’s President and CEO Grethe Moen. Net cash flow to the State was NOK 49 billion in the first half of 2017, which is an increase of 27 per cent compared with the same period last year. This ongoing improvement continues to yield good results, while there is always a need for new policy instruments to reinforce competitiveness for the Norwegian Shelf, according to Moen.
We see that other industries have managed to develop and implement the use of new digital tools to an even greater extent, particularly within the handling of large volumes of data, use of advanced analysis tools and better ways of visualising results.
“I view digitalisation as a means towards achieving further streamlining also in our industry. This creates significant opportunities,” says Moen. Realising the gains that can be achieved in the oil and gas industry requires leadership that is able to develop both organisations and business models. Petoro has chosen to place digitalisation high on the agenda in a number of contexts. One of our focus areas is drilling, where our experience indicates that new technology and digital solutions can contribute to significant efficiency gains and lower HSE risk.
Sweeping digitalisation will entail a radical change in the way the industry works. We must exhibit a willingness and acceptance when it comes to testing less mature solutions within the framework of safe operations, in contrast to reducing risk through standardisation and simplification of familiar solutions.
Moreover, this is not merely a matter of changing work processes in one’s own organisation; it is also about implementing new forms of cooperation and business models. We note the prevailing scepticism in relation to both sharing of data and openness surrounding various digitalisation initiatives. It is important to maintain a conscious awareness as regards which and what types of information companies both can and should share in an effort to boost the industry’s competitiveness.
Statoil recently launched its roadmap for digitalisation where the dual objective is to contribute to enhancing safety on the Shelf and increased efficiency. AkerBP pursues a clear strategy of using alliances to secure robust innovation and effective exploitation of expertise and resources. These are good examples of determination to pursue fresh thinking and new ideas.
The goal of the Norwegian oil and gas industry must be to become world leaders within digitalisation, and thus ensure realisation of future projects, while at the same time achieving the objective of zero incidents within health, safety and the environment.
SDFI result – first half of 2017
Net cash flow from the State’s Direct Financial Interest (SDFI) in the oil and gas activities was NOK 49 billion in the first half of 2017, an increase of 27 per cent from the same period last year.
Total oil and gas production was 1 113 thousand barrels of oil equivalents per day, three per cent higher than in the same period last year, and the highest half-year production in five years. The realised oil price in NOK was 33 per cent higher.
Investments as of the first half of 2017 amounted to NOK 12.7 billion; 13 per cent lower than last year. Development investments were higher than last year, but are offset by lower costs for production drilling, as well as lower investments in operations.
The high serious incident frequency remains a source of concern. While there have been few serious incidents associated with the SDFI portfolio of operating fields in May and June, it is still too early to conclude that the trend has been reversed.
Petoro is a key participant in the ongoing exploration activity in the Barents Sea. The potential in the Barents Sea is high, and we will gain greater insight into the possibilities here during the course of the year. Results from the wells completed so far have been positive, in part. We are particularly looking forward to the Korpfjell well, which is considered to be one of the most promising prospects in many decades.
Read more about the results in the board of directors´ report for the 2nd quarter of 2017 here.
Head of Communications Christian Buch Hansen
Mobile tel.: +47 926 24 255