Monday 16 July 2018

An impressive 20 development projects are currently under way on the Norwegian Shelf, and 13 exploration wells in the first half of 2018 have yielded 6 discoveries. Production has been somewhat lower in the first six months of the year as compared with the same period last year.

Production

Total petroleum production from the Norwegian Shelf at the end of the first half of 2018 is about 114.9 million standard cubic metres (Sm3) of oil equivalents (o.e.). Of this, around 43.2 million Sm3 o.e. are oil and around 10.2 million Sm3 o.e. are NGL and condensate.

Approximately 61.5 million Sm3 o.e. of gas has been sold, which is slightly higher than in the comparable period last year, and is in line with the NPD’s expectations.

The total volume is 4.4 million Sm3 o.e. lower than in the same period in 2017.

There are a number of reasons why production is lower than last year, and lower than the NPD’s expectations. Some of this is due to technical problems on certain fields. A somewhat colder than normal winter also entailed reduced production.

Maintaining production at a stable high level requires a significant effort from all parts of the industry. A total of 86 new development wells have been drilled so far this year, about the same number as at the same time in 2017.

The Norwegian Petroleum Directorate wants to ensure that we have an active industry that explores every opportunity to create the greatest possible value from the oil and gas deposits on the Norwegian Shelf. It is therefore important that the companies maintain a high level of activity to increase recovery from producing fields.

83 fields were operational as of 30 June. No new fields have started production so far this year. Aasta Hansteen in the Norwegian Sea is scheduled to commence production this autumn.

The Brynhild and Oselvar fields in the North Sea have ceased production.