New projects provide a basis for increased revenue

[30.10.2019] - Press release - Third quarter 2019
Photo: Arne Reidar Mortensen / Equinor
Photo: Arne Reidar Mortensen / Equinor
Petoro's investments as of the third quarter totalled NOK 19 billion, two billion higher than the same period last year. This reflects the high level of activity on the Norwegian shelf. Net cash flow from SDFI amounted per third quarter to NOK 78 billion, a reduction of seven billion from the same period last year, which was caused by lower production and prices.
"The revenue from the SDFI portfolio is considerable," says Petoro President and CEO Grethe Moen. Even with lower production and prices, Petoro will be transferring NOK 19.2 billion to the Norwegian state in the third quarter alone. New developments and multiple field upgrades result in high activity and considerable ripple effects. SR-bank's most recent economic barometer survey indicates that 78% of petroleum-related businesses in south-western Norway and the Oslo area are anticipating further growth in 2020. "Very encouraging and entirely necessary for future revenues, jobs and long-term value creation," Moen continues.

A world-class field
The giant field Johan Sverdrup came on stream on 5 October, more than two months ahead of schedule. "The field is already producing 200 000 barrels per day, and when it reaches its peak, it will account for more than 20 per cent of overall oil production from the SDFI portfolio," says Moen.

This year is the 50th anniversary of the Ekofisk discovery and Norway becoming an oil nation. Johan Sverdrup is the largest field since the 1980s, and the development reflects a whole new era. "Johan Sverdrup is blazing a trail both in the use of digitalisation, record-low emissions with the aid of electrification and very good profitability," says Moen. The field will remain profitable even with an oil price below 20 USD/bbl. Greenhouse gas emissions from the field are record-low, both on a Norwegian and international scale, and future-oriented choices have been made as regards digital solutions. We eagerly await implementation of these solutions elsewhere on the Norwegian shelf.

"This development has been a remarkable success, which emphasises the fantastic job Equinor has done as operator, along with the rest of the partnership," says Grethe Moen.

Low emissions from the SDFI portfolio
Johan Sverdrup was fully electrified from start-up. Electrification of installations is the single measure that can provide a substantial contribution toward reducing emissions from the Norwegian shelf, particularly of CO2. "The challenge moving forward will be how to electrify more of our mature fields. This is why it was so encouraging when we submitted the plan for partial electrification of the Gullfaks and Snorre fields on 11 October," says Moen. The floating wind farm Hywind Tampen will supply the two vast, mature fields with renewable electricity. The use of offshore wind as a source of energy to operate platforms is pioneering work, and clearly signals that the industry is taking big steps toward reaching Norwegian climate targets.

Petoro's portfolio includes multiple fields such as Troll A, Gjøa and Ormen Lange that have already been electrified, which contributes to low average CO2 emissions from the SDFI portfolio. Once Johan Sverdrup and Martin Linge are in full production, and Hywind Tampen is operational, more than 50% of SDFI's production will be electrified. "We have to contribute to transitioning the industry toward a low-carbon society. This is important for Norway as a mature oil and gas nation and further bolsters the competitiveness of the Norwegian shelf," Moen emphasises.

Result as of the third quarter
The serious incident frequency in the SDFI portfolio is still 0.6. Falling objects also account for the majority of incidents in the present quarter. Petoro is committed to using previous experience in its work to prevent major accidents, as learning from our own and other organisations provides an important contribution toward the zero accident vision.

Net cash flow from the State's Direct Financial Interest (SDFI) in oil and gas activities totalled NOK 78 billion per third quarter, a reduction of NOK 7 billion from the same period last year. This is due to lower production and prices.

Overall oil and gas production totalled 939 thousand barrels of oil equivalent per day (kboed), 141 kboed or 13 per cent lower than the same period last year. This reduction was mainly caused by natural production decline and lower gas extraction from Troll.


Presse contact:
Head of Communications
Christian Buch Hansen
926 24 255
 
 

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