Norway set to sustain high oil and gas production levels

Offshore staff

OSLO, Norway – Record high gas prices helped Norway achieve record revenues from offshore production of hydrocarbons last year, according to the Norwegian Petroleum Directorate (NPD).

A total of 94 fields were in production, and the NPD expects output to remain stable and high over the next few years.

In fact, due to the recent new discoveries and new field developments in the pipeline, production should rise between now and 2024, said director general Ingrid Sølvberg.

Production in 2021 amounted to 642 MMbbl of oil and 113 bcm, equivalent to 4 MMboe/d.

The five fields that came onstream were Duva, Yme, Solveig, and Martin Linge in the North Sea and Ærfugl in the northern Norwegian Sea.

Phase 1 of the Johan Sverdrup field in the North Sea is now operating at capacity with Phase 2 on track to start up later this year. At peak, Sverdrup should account for 35% of Norway’s entire oil production.

Last year companies collectively spent around NOK150 billion ($17.32 billion) on fields and development of Norwegian discoveries. Although this was down on the total for 2020, investments should start to rise again from 2023-2025, with the likelihood of high and profitable production toward 2030.

From that point current projections suggest a decline, although the extent and speed will in part depend on how much additional oil and gas are proven over the next few years.

At the same time, CO₂ emissions from Norway’s fields continues to fall, largely due to increased use of power from shore. The government aims to halve emissions in 2030 (compared with the level in 2005).

The 40 exploration wells drilled on the Norwegian shelf last year led to 18 oil and gas discoveries, with two further finds made via production wells with exploration targets. The discoveries boosted the country’s resources by 510 MMboe.

This year the NPD anticipates 30-40 exploration wells across the shelf. Later in the current quarter the association will announce awards following for the 2021 APA licensing round.

Later this year the wind turbines for Equinor’s Hywind Tampen project should be installed in the North Sea. These will supply electricity to the Gullfaks and Snorre field complexes.

As for CO₂ storage on the Norwegian shelf, the NPD’s latest estimates suggest potential to store 80 billion metric tons, equivalent to 1,500 years of Norwegian emissions at the current level.

More established companies on the shelf and new players are looking for CO₂ injection acreage, with the authorities receiving applications from five companies following the announcement of two areas in 2021.

One Norwegian independent, Lime Petroleum, entered an agreement with Nautilus Carbon Services to participate in the first phase of a larger project to secure a storage site offshore Norway for injection and permanent storage of CO₂.

01/13/2022