SDFI and Petoro annual report 2022
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Introduction to the enterprise

Oseberg Field Centre. Photo: Øyvind Hagen / ©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 70 employees. 
The Ministry of Trade, Industry and Fisheries, 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)*290285288
Employees at 31 December707064
Full-time equivalents (average number of full-time equivalents employed)68.465.962.8
Payroll share of administration grant (per cent)**42 41 37
Payroll costs per full-time equivalent (NOK million)**1.781.771.71
Percentage of consultants in administration contribution (per cent)171819
ICT expenses (NOK million)333130
Office lease expenses incl. overhead costs11.611.110.7
*   excluding VAT
** Payroll 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 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 2022, the portfolio consisted of 178 production licences, 36 producing fields and 16 pipelines and terminals, as well as follow-up of 12 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 528 billion in 2022.

Key figures for SDFI

Net cash flow (in NOK million)528,171186,05858,711
Operating revenue (NOK million) (NGAAP)640,426286,141108,940
Production expenses (million NOK) (NGAAP)23,48917,71114,074
Net income for the year (in NOK million) (NGAAP)539,208222,13547,754
Investments (in NOK million) (cash)28,37824,73227,601
Production — oil and NGL (thousand bbl/d)359388374
Production - dry gas (million scm/d)10910198
Production - total (thousand boe/d)1,0441,026988
Remaining reserves (million boe)4,7794,9725,045
Reserve replacement rate (annual percentage)498020
Reserves added (million boe)18830172
Oil price (USD/bbl)1047040
Oil price (NOK/bbl)988603376
Gas price (NOK/scm)11.954.781.25