Adjusted production permits for several fields on the Norwegian shelf

- The most important thing Norway can do in today's demanding energy situation for Europe and the world, is to facilitate for the companies operating on the Norwegian shelf to maintain their high production. The companies are continuously assessing opportunities to deliver more oil and gas. The adjustments we have made support this and will contribute to the record high gas sales we expect this year, says Minister of Petroleum and Energy, Terje Aasland (Labour Party).

Based on applications from the licensees, adjusted production permits have been approved for the Troll, Gina Krog, Duva, Oseberg, Åsgard and Mikkel fields. The permits include volumes expected to be produced partly in 2022 and partly in 2023. The Ministry has also granted a production permit for the Nova field, where first oil is expected soon.

These volumes have already been taken into account in the current estimate for Norwegian gas sales in 2022. Hence, the decisions do not increase the expected gas sales this year, but support the potential record high export volumes through the pipeline system in 2022.

Field-specific questions about the adjusted production permits must be directed to the respective companies.

 

Background

Norwegian fields deliver gas to Europe through a comprehensive gas transportation system. The fields cover 20-25 percent of the gas demand in the EU and the UK. The exception is Hammerfest LNG, where gas from the Snøhvit field is sent to the market by ship. Norwegian gas makes up 2-3 percent of the global market.

The Ministry's estimate for gas sales from the Norwegian fields in 2022 was updated in May and is 122 billion Sm³. This is 9 billion Sm³ higher than sales in 2021 and constitutes an increase of about 8 percent.

It is the the companies as licencees in production licences who market and sell the oil and gas they produce from their field portfolios. Equinor sells the state's oil and gas from the SDFI scheme, as well as their own production.

The companies on the Norwegian shelf today produce at their maximum level, or very close to this. Norway can make an important contribution in the current situation by maintaining high production of oil and gas through continued high regularity in the supply chain.

Production from existing wells and fields will be emptied over time. Continuous measures are therefore needed for increased recovery, new field developments and new discoveries through exploration to maintain a given level of production over time. By starting production from ongoing development projects related to discoveries and increased recovery measures, new production capacity can be created. Hence, it is important both to complete ongoing development projects, extract all profitable resources in fields and discoveries, and make new discoveries to ensure long-term production, employment, and value creation.