SDFI - Notes

Download print version

 
 

Eighteen production licences with SDFI participation were awarded in 2012. Fourteen of these were formally awarded by the Ministry of Petroleum and Energy on 17 January 2012 in connection with the awards in predefined areas (APA) for 2011. In addition, four licences were carved out of existing licences with SDFI participation. Seven licences were relinquished in 2012.

As a result of claims being upheld by the sliding scale decision and the arbitration judgement, the holding in the Heidrun Unit changed from 57.40288 per cent to 57.79339 per cent.
 

All figures in NOK million	Historical cost at 1 Jan 12	Accu- mulated deprec- iation 1 Jan 12	Addition 2012	Write-down 2012	Disposal 2012	Transfers 2012	Deprecia- tion 2012	Book value at 31 Dec 12
Fields under development	1 214	0	2 954	(391)	0	88	0	3 865
Fields in operation	400 652	(243 187)	21 354	(547)	0	357	(22 495)	156 134
Pipelines and terminals	60 538	(28 824)	1 605	2	(2)	0	(1 737)	31 582
Capitalised exploration expenses	4 309	0	1 374	0	(455)	(446)	0	4 783
Total tangible fixed assets	466 713	(272 011)	27 287	(935)	(457)	0	(24 232)	196 365
Intangible assets	960	(96)	70	(243)	0	0	(42)	649
Financial fixed assets	1 746	0	(644)	0	0	0	0	1 102
Total fixed assets (NGAAP)	469 419	(272 107)	26 713	(1 179)	(457)	0	(24 273)	198 116
Translation to cash basis	(51 909)	23 693	(1 038)	0	455	0	4 766	(34 905)
Total fixed assets on cash basis	417 510	(248 414)	25 675	(1 179)	(2)	0	(19 507)	163 211

Tangible fixed assets for the Snøhvit field include a capitalised long-term financial charter for three ships used for LNG transport from the field. These vessels will be depreciated over 20 years, which is the duration of the charter.

Intangible assets of NOK 649 million relate mainly to rights in the gas storage facility at Aldbrough, which began commercial operation in 2009. The whole facility with nine storage caverns is now operational. Total capacity for the SDFI and Statoil is 100 million scm, of which the SDFI’s share is 48.3 per cent. The amount invested is depreciated on a straight-line basis over the estimated 25-year economic life. On the basis of technical reports concerning lower utilisation of storage capacity and reduced volatility, Statoil wrote down the value of the facility in December 2012. The value of the SDFI’s share has been correspondingly written down in the SDFI accounts for 2012. Investment in further development of the Etzel gas store and a small amount for Åsgard Transport are included in intangible assets.

Financial fixed assets of NOK 1 102 million include the following.

• Capacity rights for regasification of LNG at the Cove Point terminal in the USA, with an associated agreement on the sale of LNG from Snøhvit to Statoil Natural Gas LLC (SNG) in the USA, reclassified with effect from 2009 as a financial fixed asset. This activity is assessed as an investment in an associate and recorded in accordance with the equity method. See also note 11. The share of profits earned up to 30 September 2012 has been reversed and is recorded as a dividend in the balance sheet at 31 December 2012.
• Shareholdings in Norsea Gas AS, with a book value of NOK 3.98 million, and in Norpipe Oil AS.

 

All figures in NOK million	2012	2011	2010
Mature oil fields	61 690	59 494	58 352
Gas fields/new developments*	142 416	121 481	95 576
Other infrastructure	2 548	2 566	2 275
Net profit agreements	1 085	951	876
Other revenue	10 785	9 080	6 566
Elimination internal sales	(4 640)	(4 752)	(4 375)
Total operating revenue	213 885	188 820	159 270

* Includes Gassled.

Other revenue primarily comprises revenue from onward sale of purchased gas.

 

All figures in NOK million	2012	2011	2010
Crude oil, NGL and condensate	96 320	95 375	81 019
Gas	106 442	81 683	67 964
Transport and processing revenue	9 913	10 178	8 989
Other revenue	124	633	422
Net profit agreements	1 085	951	876
Total operating revenue	213 855	188 820	159 270

All crude oil, NGL and condensate from the SDFI are sold to Statoil, and all gas is sold by Statoil at the SDFI’s expense and risk. Virtually all the gas is sold to customers in Europe, and the three largest customers purchase about 30 per cent of the annual volumes under long-term contracts.
 

All figures in NOK million	2012	2011	2010
PRODUCTION EXPENSES
Mature oil fields	8 722	7 752	8 929
Gas fields/new developments*	7 003	6 948	6 765
Other infrastructure	655	808	175
Total production expenses	16 380	15 508	15 870
OTHER OPERATING EXPENSES
Mature oil fields	2 748	2 866	3 210
Gas fields/new developments*	10 332	9 906	10 280
Other infrastructure	(233)	129	81
Other operating expenses	10 003	9 164	7 731
Elimination internal purchases	(4 640)	(4 752)	(4 375)
Total other operating expenses	18 210	17 313	16 927
	��
Total production and other operating expenses	34 590	32 821	32 797

* includes Gassled

Other operating expenses primarily comprise the cost of purchasing gas for onward sale.
 

 

All figures in NOK million	2012	2011	2010
Petroleum products	1 460	1 031	168
Spare parts	2 047	1 781	1 904
Total inventories	3 507	2 812	2 074

Petroleum products embrace LNG and natural gas. The SDFI does not hold inventories of crude oil, which is sold in its entirety to Statoil.
 

Interest on the government’s fixed capital is recorded in the accounts compiled on a cash basis. The amount of interest is calculated as specified in Proposition no 1 Appendix no 7 (1993-94) to the Storting (the Finance Bill) and in item 5.7 in the 2012 Letter of Award to Petoro AS from the Ministry of Petroleum and Energy.

Interest on the government’s fixed capital is charged to operations in order to take account of capital costs and to provide a more accurate picture of resource use. This is a calculated cost without a cash flow effect.

The accounts compiled on a cash basis include an open account with the government for the difference between recording by chapter/item in the appropriation accounts and liquidity movements.

Interest on the open account with the government is calculated as specified in item 5.6 in the 2012 Letter of Award to Petoro AS from the Ministry of Petroleum and Energy. The interest rate applied is related to the interest on short-term government securities and corresponds to the rate for short-term Treasury bills calculated on the basis of the average monthly balance in the open account with the government.
 

All figures in NOK million	2012	2011	2010
Interest	71	101	4
Other financial revenue	58	432	101
Currency gain	4 427	5 512	5 898
Currency loss	(5 331)	(5 287)	(6 123)
Interest costs	(74)	(171)	(151)
Other financial expenses	(256)
Interest on removal liability	(1 626)	(1 826)	(1 575)
Net financial items	(2 731)	(1 239)	(1 846)

 

The government, represented by the Ministry of Petroleum and Energy, owns 67 per cent of Statoil and 100 per cent of Gassco. These companies are classified as close associates of the SDFI.

Statoil is the buyer of the government’s oil, condensate and NGL. Sales of oil, condensate and NGL to Statoil totalled NOK 96.6 billion (corresponding to 158 million boe) for 2012 and NOK 95.5 billion (161 million boe) for 2011.

Statoil markets and sells the government’s natural gas at the government’s expense and risk, but in Statoil’s name and together with its own production. The government receives the market value for these sales. The government sold dry gas directly to Statoil to a value of NOK 407 million in 2012, compared with NOK 441 million in 2011. Statoil is reimbursed by the government for its relative share of costs associated with the transport, storage and processing of dry gas, the purchase of dry gas for onward sale and
administrative expenses relating to gas sales. These reimbursements amounted to NOK 19.5 billion in 2012 and NOK 18.7 billion in 2011. Open accounts with Statoil totalled NOK 8.4 billion in favour of the SDFI, converted at the exchange rate prevailing at 31
December, compared with NOK 10.7 billion in 2011.

Pursuant to the marketing and sale instruction, the SDFI also participates with a financial interest in Statoil Natural Gas LLC (SNG) in the USA. NOK 1.3 billion in cash flows from SNG at 30 September 2012 were settled and transferred to the SDFI in 2012. The outstanding cash flow earned for the fourth quarter will be settled in 2013. The investment is recorded in accordance with the equity method, and is covered in more detail in note 11.

Open accounts and transactions relating to activities in the production licences are not included in the above-mentioned amounts. Hence, no information has been included with regard to open accounts and transactions relating to licence activities with Statoil and Gassco. The SDFI participates as a partner in production licences on the NCS. These are accounted for in accordance with the proportionate consolidation method.
 

A minor loss of NOK 4.9 million on the SDFI’s share of debtors from trading in the UK under the marketing and sale instruction was identified and expensed during the year.

Trade debtors and other debtors are otherwise recorded at face value.
 

<< Previous page

Next page>>​​