Directors’ report 2012
Petoro’s contribution to added value
The board regards creating added value for the SDFI as an important job at Petoro. Results of the company’s work are reflected in a wide range of activities which will contribute to substantial added value both in the immediate future and in the long run. An example of an important issue in 2012 was the work devoted to integrated further development of the Gullfaks area, where Petoro is the only partner of operator Statoil. These efforts embrace decisions related to upgrading drilling facilities, improved recovery and subsea compression. Substantial work was also done to secure decisions on
developing the Martin Linge field and on investment related to expanded compression for Ormen Lange plus associated infrastructure. Initiatives which contributed to value added also include the negotiated solution for Snorre secured by Petoro in place of a redetermination, and an increased holding in H-north in the Fram area through negotiations on a unitisation and tie-back to Fram. Another example of safeguarding asset values is provided by Petoro’s work in connection with the latest Heidrun redetermination, where the northern part of the N segment was embraced by a sliding scale decision and the SDFI interest was increased through an arbitration finding related to the redetermination.
Petoro has a process which seeks to assess the company’s contribution to value added. In recent years, estimates have been NOK 5-10 billion per annum.