SDFI and Petoro annual report 2020
Download report     |

Introduction to the enterprise

Breidablikk. Illustration: Equinor

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 year- end, the company had 64 employees. 
The Ministry of Petroleum and Energy, in the person of the minister, represents the government as sole owner and serves as the company’s general meeting and highest authority. The Board has overall responsibility for administration of the company. Petoro’s organisation is shown in the figure above.

Key figures for Petoro AS

Total allocation/ administration grant (NOK million)*288287280
Employees at 31 December646564
Full-time equivalents (average number of full-time equivalents employed)62.862.964.2
Payroll share of administration grant (per cent)**373738
Payroll costs per full-time equivalents (NOK million)**1.711.711.64
Percentage of consultants in administration grant (per cent)192016
ICT expenses (NOK million)303533
Office lease expenses incl. overhead costs10.710.811.2
*)   excluding VAT
**) Payroll in Note 3, excl. provision agreed on one year’s severance pay as well as salary and pension for two months’ remaining notice period in 2021 for the former CEO

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 covers 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 2020, the portfolio consisted of 194 production licences, 36 producing fields and 16 pipelines and terminals, as well as follow-up of 13 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 59 billion in 2020.

Key figures for SDFI

Net cash flow (in NOK million)58,71196,184119,666
Operating revenue (NOK million) (NGAAP)108,940153,395177,431
Production expenses (million NOK) (NGAAP)14,07413,69017,440
Net income for the year (in NOK million) (NGAAP)47,75495,647114,210
Investment (in NOK million) – capital accounts27,60126,33122,555
Production — oil and NGL (thousand bbl/d)374349370
Production - dry gas (million scm/d)9898113
Production - total (thousand boe/d)9889641,084
Remaining reserves (million boe)5,0455,3355,544
Reserve replacement rate (annual percentage)204016
Reserves added (million boe)7214262
Oil price (USD/bbl)406571
Oil price (NOK/bbl)376572573
Gas price (NOK/scm)1.251.922.17