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Released July 25, 2018 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Norway's oil & gas production levels fell in the first six months of 2018, compared with the same period in 2017, but the region has seen a high level of project activity.
Total petroleum production from the Norwegian Shelf at the end of the first half of 2018 was about 114.9 million standard cubic metres (Sm3) of oil equivalents (o.e.), according to the latest figures from the Norwegian Petroleum Directorate (NPD). The total volume was 4.4 million Sm3 o.e. lower than in the same period in 2017, due to technical problems at certain fields and a colder-than-normal-winter that hampered production.
Of the total production, roughly 43.2 million Sm3 o.e. was oil and about 10.2 million Sm3 o.e. was natural gas liquids and condensate. Approximately 61.5 million Sm3 o.e. of gas was sold in the first six months, "slightly higher than the same period last year", the NPD said.
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. In addition, 20 development projects are currently under way on the Norwegian Shelf, and 13 exploration wells in the first half of 2018 have yielded six discoveries. The 20 development projects that are currently under way include new installations, minor discoveries that exploit existing infrastructure and major projects for improved recovery from mature fields. The authorities also approved seven applications for development and operation during the first half of 2018: Skogul, Yme, Valhall flank west, Ærfugl, Fenja, Johan Castberg and the Snorre expansion project. They represent investments of about $12.1 billion and have a total expected value of about $20 billion.
Industrial Info has recently reported on two new investment projects, worth $7 billion, by Norway's' oil and gas major Equinor for the development of the Johan Castberg ($6 billion) and the Troll ($1 billion) oil and gas fields. For additional information, see June 26, 2018, article - Norway Approves $6 Billion Plan for Johan Castberg Field and July 18, 2018, article - Equinor Outlines New Plan for Troll Oil & Gas Field.
"Drilling new wells is the single most important measure to increase recovery," said Ingrid Sølvberg, director of development and operations for the Norwegian Petroleum Directorate. "Therefore, it is important that we constantly identify new drilling targets and drill new wells. We are seeing a record-breaking number of projects in the implementation phase, with more projects currently being planned. We find it particularly gratifying that several of the projects aim to increase recovery from mature fields; for example Valhall, Snorre and Njord. These are large and significant developments that will ensure that we recover more profitable oil and gas from the subsurface."
She also highlighted the importance of developing smaller discoveries: "There is a lot of talk about the major discoveries that are being developed with new infrastructure, such as Johan Castberg and Johan Sverdrup. These are extremely important and profitable projects. At the same time, another important factor is good exploitation of available capacity in the already well-developed infrastructure on the Norwegian Shelf. Our focus is on ensuring that the companies identify solutions for minor discoveries which include good utilisation of the existing infrastructure. Many of these smaller discoveries are very profitable, both for the companies and for our society."
The NPD expects that 40-50 exploration wells will be drilled in 2018, compared with 36 in 2016 and 36 in 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Total petroleum production from the Norwegian Shelf at the end of the first half of 2018 was about 114.9 million standard cubic metres (Sm3) of oil equivalents (o.e.), according to the latest figures from the Norwegian Petroleum Directorate (NPD). The total volume was 4.4 million Sm3 o.e. lower than in the same period in 2017, due to technical problems at certain fields and a colder-than-normal-winter that hampered production.
Of the total production, roughly 43.2 million Sm3 o.e. was oil and about 10.2 million Sm3 o.e. was natural gas liquids and condensate. Approximately 61.5 million Sm3 o.e. of gas was sold in the first six months, "slightly higher than the same period last year", the NPD said.
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. In addition, 20 development projects are currently under way on the Norwegian Shelf, and 13 exploration wells in the first half of 2018 have yielded six discoveries. The 20 development projects that are currently under way include new installations, minor discoveries that exploit existing infrastructure and major projects for improved recovery from mature fields. The authorities also approved seven applications for development and operation during the first half of 2018: Skogul, Yme, Valhall flank west, Ærfugl, Fenja, Johan Castberg and the Snorre expansion project. They represent investments of about $12.1 billion and have a total expected value of about $20 billion.
Industrial Info has recently reported on two new investment projects, worth $7 billion, by Norway's' oil and gas major Equinor for the development of the Johan Castberg ($6 billion) and the Troll ($1 billion) oil and gas fields. For additional information, see June 26, 2018, article - Norway Approves $6 Billion Plan for Johan Castberg Field and July 18, 2018, article - Equinor Outlines New Plan for Troll Oil & Gas Field.
"Drilling new wells is the single most important measure to increase recovery," said Ingrid Sølvberg, director of development and operations for the Norwegian Petroleum Directorate. "Therefore, it is important that we constantly identify new drilling targets and drill new wells. We are seeing a record-breaking number of projects in the implementation phase, with more projects currently being planned. We find it particularly gratifying that several of the projects aim to increase recovery from mature fields; for example Valhall, Snorre and Njord. These are large and significant developments that will ensure that we recover more profitable oil and gas from the subsurface."
She also highlighted the importance of developing smaller discoveries: "There is a lot of talk about the major discoveries that are being developed with new infrastructure, such as Johan Castberg and Johan Sverdrup. These are extremely important and profitable projects. At the same time, another important factor is good exploitation of available capacity in the already well-developed infrastructure on the Norwegian Shelf. Our focus is on ensuring that the companies identify solutions for minor discoveries which include good utilisation of the existing infrastructure. Many of these smaller discoveries are very profitable, both for the companies and for our society."
The NPD expects that 40-50 exploration wells will be drilled in 2018, compared with 36 in 2016 and 36 in 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
