SDFI - Notes

Twenty-five production licences with SDFI participation were awarded in 2013. Seventeen of these were formally awarded by the Ministry of Petroleum and Energy on 15 January 2013 in connection with the awards in predefined areas (APA) for 2012. A further eight licences were formally awarded by the Ministry of Petroleum and Energy on 21 June 2013 in connection with the 22nd licensing round. In addition, four licences were carved out of existing licences with SDFI participation, and SDFI participation was increased in two other licences.

Eight licences were relinquished in 2013. The Fram H-North unit was established, and redeterminations were carried out in the Vega and Ormen Lange units during the year.

 

All figures in NOK million	Book value at 31 Dec 12	Correc-tion to opening balance	Historical cost at 1 Jan 13	Accu- mulated depreci- ation 1 Jan 13	Addition 2013	Impair- ment 2013	Dispo- sal 2013	Depreci- ation 2013	Book value at 31 Dec 13
Fields under development	3 865	5 985	9 850	0	3 092	0	0	(298)	12 643
Fields in operation	156 134	(5 985)	415 831	(265 682)	22 503	(256)	(33)	(21 391)	150 973
Pipelines and terminals	31 582	0	62 143	(30 561)	2 634	0	0	(1 806)	32 411
Capitalised exploration expenses	4 783	0	4 783	0	2 295	0	(1 322)	0	5 757
Total tangible fixed assets	196 365	0	492 608	(296 243)	30 524	(256)	(1 354)	(23 495)	201 784
Intangible assets	649	0	786	(138)	(8)	0	0	(31)	610
Financial fixed assets	1 102	0	1 102	0	(709)	0	0	0	393
Total fixed assets (NGAAP)	198 116	0	494 496	(296 380)	29 808	(256)	(1 354)	(23 526)	202 787

The correction to the opening balance relates to development projects which had been classified as “fields in production” instead of “fields under development”.

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 610 million relate mainly to rights in the gas storage facility at Aldbrough. 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. Investment in further development of the Etzel gas storage facility and a small amount for Åsgard Transport are included in intangible assets.

Financial fixed assets of NOK 393 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 SDFI participates in SNG under the marketing and sale instruction with regard to activities related to the marketing and sale of the government’s LNG from Snøhvit. Nothing indicates that a new impairment test is required. Cash flows from the SNG are settled on a monthly basis in connection with the purchase and sale of LNG from 2013.
• Shareholdings in Norsea Gas AS, with a book value of NOK 3.98 million, and in Norpipe Oil AS.

 

 

All figures in NOK million	2013	2012
Mature oil fields	62 013	61 690
Gas fields/new developments	127 188	142 416
Other infrastructure	2 455	2 548
Net profit agreements	627	1 085
Other revenue	6 466	10 785
Elimination internal sales	(4 441)	(4 640)
Total operating revenue	194 308	213 885

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

 

All figures in NOK million	2013	2012
Crude oil and NGL*	92 614	96 320
Gas	90 441	106 442
Transport and processing revenue	10 421	9 913
Other revenue	205	124
Net profit agreements	627	1085
Total operating revenue	194 308	213 885

* Includes condensate.
 
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	2013	2012
Production expenses
Mature oil fields	9 102	8 722
Gas fields/new developments*	7 561	7 003
Other infrastructure	1 599	655
Total production expenses	18 262	16 380
Other operating expenses
Mature oil fields	2 881	2 748
Gas fields/new developments*	10 560	10 332
Other infrastructure	381	-233
Other operating expenses	8 152	10 003
Elimination internal purchases	(4 441)	(4 640)
Total other operating expenses	17 534	18 210
Total production and other operating expenses	35 796	34 590

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

 

 

All figures in NOK million	2013	2012
Petroleum products	2 223	1 460
Spare parts	2 243	2 047
Total inventories	4 466	3 507

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

 

Not relevant under the Norwegian Accounting Act.

 

All figures in NOK million	2013	2012
Interest	50	71
Other financial revenue	41	58
Currency gain	5 474	4 427
Currency loss	(3 514)	(5 331)
Interest costs	(123)	(74)
Other financial expenses	0	(256)
Interest on decommissioning liability	(1 566)	(1 626)
Net financial items	362	(2 731)

 

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 92.5 billion (corresponding to 153 million boe) for 2013 and NOK 96.6 billion (158 million boe) for 2012. 

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 484 million in 2013, compared with NOK 407 million in 2012. 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 17.4 billion in 2013, compared with NOK 19.5 billion in 2012. Internal LNG cargoes from SNG to Statoil are recorded net from 2013. Open accounts with Statoil totalled NOK 10.2 billion in favour of the SDFI, converted at the exchange rate prevailing at 31 December, compared with NOK 8.4 billion in 2012.

Pursuant to the marketing and sale instruction, the SDFI also participates with a financial interest in Statoil Natural Gas LLC (SNG) in the USA. Cash flows from SNG are settled continuously on a monthly basis in connection with the purchase and sale of LNG from 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.

 

No bad debts were recorded during the year.

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

 

<< Previous page

Next page>>​​