- Total petroleum production from the Norwegian Shelf at the first half of 2018 is about 114.9 million 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.
- A total of 86 new wells have been drilled so far this year, about the same number as at the same time in 2017.
- 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.
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.
- The 20 development projects that are currently under way represent considerable diversity with new installations, minor discoveries that exploit existing infrastructure and major projects for improved recovery from mature fields.
- The authorities have received two new applications for development and operation so far this year. In May, Wintershall submitted an application for Nova, where a tie-back to the Gjøa installation is planned. On 3 July, Equinor submitted an application for development and operation for Phase 3 of Troll, which entails producing the gas cap in Troll Vest.
- The authorities approved seven applications for development and operation during the first half of 2018. These are Skogul, Yme, Valhall flank west, Ærfugl, Fenja, Johan Castberg and the Snorre expansion project.
- These projects represent investments of around NOK 100 billion and a total expected value of about NOK 165 billion.
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,
...says Ingrid Sølvberg, Director of development and operations in the NPD.
- Exploration activity on the Norwegian Shelf is high. The Norwegian Petroleum Directorate expects that 40-50 exploration wells will be drilled in 2018, compared with 36 in 2016 and 2017.
However, if production is to be maintained at a high level, there must be larger discoveries than what has been the average over the last ten years. The possibility of making large discoveries is greatest in areas that have not been explored much,
..says Exploration director Torgeir Stordal.
- In the first six months of 2018, 13 exploration wells have been completed, along with 10 wildcat wells and 3 appraisal wells. Six discoveries have been made; three in the North Sea, two in the Norwegian Sea and one in the Barents Sea.
- Between 30 and 35 exploration wells are planned in the second half of the year, and drilling was in progress on 6 wells at the end of June.
- The total number of exploration wells for 2018 would appear to be around 30 in the North Sea, while there will probably be between 8 and 10 both in the Norwegian Sea and in the Barents Sea.
- In mid-January 2018, 34 companies received offers for a total of 75 new production licences in APA 2017.
-39 companies applied for participating interests.
-Of the 75 production licences, 45 are in the North Sea, 22 in the Norwegian Sea and 8 in the Barents Sea.
-22 of the production licences are additional acreage for existing production licences.
-APA 2018 was announced in May, and the deadline for applications is 4 September 2018.
-In June 2018, 11 companies were offered 12 new production licences in the 24th licensing round.
-Three of the offered production licences are located in the Norwegian Sea and nine in the Barents Sea.
-Two of these are additional acreage for existing production licences.
Further details may be found in the following report: