Petoro - a driving force on the Norwegian continental shelf

SDFI and Petoro annual report 2013

Directors’ report 2013

Book assets and equity

The book value of assets totalled NOK 234.9 billion at 31 December 2013. These assets mainly comprise operating facilities related to field installations, pipelines and land-based plants, as well as current debtors. Equity at 31 December amounted to NOK 162.9 billion. Future removal liabilities were NOK 52.6 billion. These liabilities are calculated in accordance with an established industry standard based on existing technology. Great uncertainty exists both over the removal estimates and over the timing of removals. Current liabilities, which comprise provision for costs incurred but not paid, were NOK 17.2 billion at 31 December. 

From the establishment of Petoro in 2001 and until 31 December 2013, the number of production licences in the SDFI portfolio rose from 80 to 179. At 31 December 2013, Petoro also participated in 15 joint ventures for pipelines and terminals. 


Strategy for Petoro

The company’s strategy was revised in 2013. Its new strategy retains mature fields as a main priority. This is because such fields represent a large proportion of Petoro’s portfolio, and because investment decisions which secure the recovery of their remaining resources, and thereby their value, are time-critical.
Field development has also been elevated as a separate principal strategic topic. The background for this is Petoro’s participation in large new projects such as Johan Sverdrup as well as the insight and experience which the company has acquired from its work on mature fields and which can be applied to securing long-term and flexible solutions for new field developments.

The far north has been chosen as third main topic in the strategy. Petoro has a broad involvement in the Barents Sea through participation in a substantial number of production licences in the exploration phase and in the Snøhvit field and Johan Castberg development, where substantial value could be secured through good and forward-looking area solutions.