The value of the State's Direct Financial Interest in the petroleum activities (SDFI) is estimated to NOK 625.7 billion as of 1 January 2005. This is according to a value estimation carried out by Wood Mackenzie for the Ministry of Petroleum and Energy.

- This value estimation shows an increase of more than NOK 200 billion in 2004 in the state's direct ownership on the Norwegian continental shelf. With an increase of almost 50 per cent, the SDFI was worth NOK 625.7 billion at the beginning of 2005, says Thorhild Widvey, Minister of Petroleum and Energy. The increase is mainly caused by high oil prices, but increased investments and reduced costs are also important contributions. The development shows that continued focus on exploration and a maintained high investment level is important for the value creation on the Norwegian continental shelf, Widvey comments.

Comparing with the value by the start of 2004, the value of SDFI has increased by NOK 214.3 billion. Revised price estimates accounts for NOK 175.8 billion of the value change. Thus, the value increase of the underlying asset base excluding the impact of changes to the price assumptions is NOK 38.5 billion. According to Wood Mackenzie the increase in value is mainly caused by maturation of resources, increased investments on short and medium term, and reduced costs. Gullfaks, Åsgard, Heidrun, Norne and Grane contributed mostly to the increase of value in the SDFI-portfolio in 2004.

Wood Mackenzie used the price expectations in the National Budgets for 2004 and 2005 in the analysis:

The value estimation of the SDFI-portfolio is an element of the Ministry of Petroleum and Energy's follow-up of SDFI and Petoro. Petoro is managing the SDFI on behalf of the state.

The Wood Mackenzie report (pdf format)