SDFI and Petoro annual report 2019
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Introduction to the enterprise

Snorre A. Photo: Bo B. Randulff & Even Kleppa

Petoro AS

Petoro manages the State’s Direct Financial Interest (SDFI). The company’s principal objective is to generate the highest possible financial value from the SDFI portfolio. At the end of the year, the company had 65 employees. 

Key figures for Petoro AS

Total appropriation / administration grant (NOK million) *287280274
Full-time equivalents (average number of full-time equivalents employed)62.964.264.4
Payroll share of administration grant (per cent) **373839
Payroll costs per full-time equivalents (NOK million) **1.71 1.64 1.66
Share of administration grant for studies and cutting-edge expertise (per cent)201615
*   excluding VAT
** payroll as specified in Note 3

The State’s Direct Financial Interest (SDFI)

The SDFI scheme was established in 1985. Under this arrangement, the state participates as a direct investor in petroleum activities on the Norwegian continental shelf (NCS), so that the state receives revenues and meets expenses associated with SDFI’s ownership interests. Petoro acts as licensee for the state’s ownership interests in production licences, fields, pipelines and onshore facilities, and manages this portfolio based on sound business principles. At the end of 2019, the portfolio consisted of 200 production licences, 35 producing fields and 16 pipelines and terminals, as well as follow-up of 14 production licences with net profit agreements. 

The SDFI portfolio represents about one-third of Norway’s overall oil and gas reserves and yielded a cash flow of NOK 96 billion in 2019.

Key figures for SDFI

Net cash flow (in NOK million)96 184119 66687 157
Operating revenue (NOK million) (NGAAP)153 395177 431150 720
Production expenses (million NOK) (NGAAP)13 69017 44014 262
Net profit (in NOK million) (NGAAP)95 647114 21098 919
Investment (in NOK million) (capital accounts)26 33122 55526 564
Production — oil and NGL (1,000 bbl/d)349370398
Production - dry gas (million scm/d)98113113
Production - total (thousand boe/d)9641 0841 110
Remaining reserves (million boe)5 3355 5445 879
Reserve replacement rate (annual percentage)401678
Reserves added (million boe)14262316
Oil price (USD/bbl)657154
Oil price (NOK/bbl)572573449
Gas price (NOK/scm)1.922.171.72