Substantial revenues and continued investment in the petroleum sector

The 2013 National Budget estimates that the State’s net cash flow from petroleum activities will total almost NOK 391 billion in 2012. Direct and indirect taxes account for about NOK 233 billion of this amount. The State’s Direct Financial Interests (SDØE) will contribute approximately NOK 144 billion, while dividends from Statoil will amount to NOK 13.9 billion.

The State’s net cash flow in 2012 is about NOK 8 billion greater than anticipated in the Revised National Budget for 2012. This is primarily due to a rise in the expected 2012 gas price. The expected 2012 oil price has been adjusted marginally compared to the 2012 Revised National Budget, to NOK 650 per barrel (fixed 2013 krone).

“The petroleum industry is Norway’s most important industry, and will continue to generate large revenues for the State in the years ahead, benefiting the entire country. It will also provide jobs and major opportunities for the Norwegian supplier industry, which is highly competent and internationally competitive,” says Minister of Petroleum and Energy Ola Borten Moe.

Investment in the petroleum industry is expected to total around NOK 174 billion in 2012.

“A large proportion of current investment is helping to ensure production from existing fields and smaller fields that are dependent on existing infrastructure. Investing in the extraction of these resources now, while this infrastructure is available, is good resource management,” says Minister of Petroleum and Energy Ola Borten Moe.

Oil production in 2012 is expected to amount to approximately 1.7 million barrels per day, while NGL and condensate production will total about 0.3 million barrels per day. Gas production is forecast to total almost 107 billion standard cubic metres (Sm³) in 2012.

“Gas production is expected to increase in the years ahead, while liquid production forecasts for the next few years indicate stable growth. However, such development requires industry stability, and active investment in existing fields. To ensure that we realise the value potential of the petroleum resources, we must also continue to develop finds, conduct active exploration in opened areas, and complete ongoing processes to open new areas,” says Minister of Petroleum and Energy Ola Borten Moe.

In the 2011 resource accounts, the total petroleum resources on the Norwegian continental shelf were estimated at approximately NOK 80.5 billion barrels of oil equivalents. Of these, about 60 percent have not yet been extracted. Some 28 exploratory wells have been drilled thus far this year (as at 26 September), and several profitable discoveries have been made.