The budget price for Norwegian crude oil for 2004 is NOK 250 per barrel. For 2005 the price assumption is NOK 230 per barrel. Compared to the Revised National Budget 2004 this is an upward adjustment of NOK 50 both for this and next year.

The prognosis for petroleum production from the Norwegian continental shelf is more or less unchanged from the Revised National Budget for 2004. The average production of Norwegian crude oil (included NGL*) in 2004 is expected to be 3.2 million barrels per day, approximately the same as last year. The estimated production in 2005 is 3.3 million barrels per day. The oil production is expected to remain at this level over the next years, but will then gradually decline.

Production of gas for sale in 2004 is estimated to be approximately 75 billion standard cubic meters (scm). In 2003 the production of gas for sale was 73.1 billion scm. The gas sale is expected to increase in the coming years to a long-term level of 120 billion scm from 2010.

The State's total net cash flow from the petroleum sector is estimated to be NOK 205.6 billion in 2004. Taxes and fees constitute NOK 116.7 billion. Net cash flow from the State direct financial interest (SDFI) is NOK 83.7 billion**. Next year the state's net cash flow from the petroleum sector is estimated to approximately NOK 204 billion.

Investments are expected to be about NOK 70 billion in 2004, including investments in exploration. The high level of investment is to a large extent due to development of the fields Ormen Lange, Snøhvit and Kristin. Investments are expected to remain at a high level for the coming years, and for 2005 the estimate is NOK 81 billion.

*NGL = Natural Gas Liquids

**In addition the cash flow includes dividends from Statoil ASA and disposal contributions