The increase was primarily caused by higher gas prices and tariff revenues as a result of increased ownership in key gas infrastructure. The increase was partly offset by lower gas sales and oil prices, as well as higher operating expenses.
“Our fields delivered yet another strong year, demonstrating that the Norwegian continental shelf still has the strength, competence and importance needed,” says Petoro CEO Kristin F. Kragseth.
Geopolitical instability
Recent times have been marked by growing geopolitical tensions and uncertainty in the global economy, with sharp and rapid fluctuations in both oil and gas prices. Such market movements underscore how closely energy markets are linked to global political and security developments.
“For Petoro and the SDFI portfolio, this further reinforces the importance of sound operations, a long-term perspective and high security of supply. The Norwegian continental shelf plays a key role as a stable and predictable supplier of energy to Europe,” Kragseth says.
Our best year for safety
The safety results in 2025 were the best in the company’s history. Long-term and systematic efforts throughout the entire value chain are delivering clear results.
“Safety is our most important value. Our responsibility is to ensure that the people who work on the NCS and at the onshore plants have a safe workplace and always return home safe from work. The results from last year show that we’re headed in the right direction, but this is no time to rest on our laurels. We know we can do even better,” Kragseth says.
New opportunities in the portfolio
2025 was a year characterised by growth and new opportunities. Johan Castberg came on stream in late March, and the Isflak discovery has already yielded promising additional volumes. Johan Sverdrup delivered a record year for production, and the decision to move ahead with the phase 3 development paves the way for further value creation for decades to come.
Verdande came on stream, Åsgard increased gas recovery through new technology, and the Omega Alfa discovery in the Frigg Formation contributed to the best exploration year since 2009.
At the same time, Petoro and the Norwegian continental shelf face a clear challenge. From the mid-2030s, production will decline, and current activity levels and reserve additions will not be sufficient to replace the volumes being produced.
“This amplifies a clear message to the entire industry that we need to explore more, invest more, and not least – work even smarter in the years to come,” Kragseth says.
The Troll field remains the powerhouse of Norwegian gas exports. This field alone covers about ten per cent of Europe’s gas consumption, and continuous efforts are underway to maintain a high level of gas production going forward. Norway is continental Europe’s most important and most reliable energy partner – a role poised to become even more important once all Russian gas imports to Europe end in 2027.
In 2026, Petoro plans to invest about NOK 35 billion in projects we are involved in.
Competitiveness must improve
Petoro’s forecasts show that the SDFI portfolio is on track to achieve a 40 per cent reduction in emissions by 2030 compared with 2005. This has largely been achieved through electrification projects.
“To ensure competitiveness in the years ahead, we must succeed in both cost efficiency and emissions reductions. Smarter operations, improved reservoir management and efficient project execution are critical to delivering the energy Europe needs – while at the same time maximising the value we manage on behalf of society,” Kragseth says.
At our fixed drilling facilities, 47 percent more wells were drilled in 2025 compared with the previous year. The improvement was driven by better planning, clearer priorities and closer cooperation with suppliers.
To ensure future value creation, we see a need to step up our efforts in research and development. New and improved use of technology, digitalisation and artificial intelligence holds potential that exceeds what we are currently able to realise.
We face many opportunities and challenges ahead. To address them, we need highly skilled people. Norway is facing a serious STEM challenge, as the share of students choosing advanced studies in science and mathematics is declining. The EU’s target is 32 percent; Finland stands at 35 percent, while Norway is below 18 percent.
“This is not sustainable for a country and an industry that depend on world‑leading competence to succeed both in the energy transition and in the further development of the continental shelf. We need a clear national commitment. Our future depends on it,” Kragseth says.
Financial results
Net cash flow to the state from SDFI totalled NOK 243 billion in 2025, NOK 23 billion higher than the year before. This is the third-highest cash flow the company has ever achieved.
The increase was primarily driven by higher gas prices and tariff revenues as a result of increased ownership in key gas infrastructure. The positive effect was partly offset by lower gas volumes, lower oil prices, and higher operating costs.
Total production reached 1,049 thousand barrels of oil equivalent per day (kboed), a reduction of 15 kboed compared with 2024.
Gas production amounted to 108 million standard cubic metres (mill. scm) per day, a reduction of four per cent compared with the year before. This reduction was mainly caused by a maintenance shutdown at Hammerfest LNG, as well as lower production from Troll due to capacity issues at Kollsnes. The average realised gas price was NOK 4.86, compared with NOK 4.50 per scm the year before. Prices were thus higher than in 2024, driven by a tight European gas market, characterised by high LNG competition, robust demand and reduced supplies of Russian pipeline gas.
Liquids production amounted to 366 kboed, an increase of 12 kboed compared with the previous year. This increase was primarily caused by higher production from Johan Castberg, as well as Tyrving and Breidablikk. This was partly offset by natural decline in mature fields and a reduced ownership interest in Heidrun following the ownership swap with Equinor. The average realised oil price was USD 69, compared with USD 82 per barrel the year before. This price drop reflects high global production, tapering growth in demand and increased oil inventories, which overall have led to an oil market in surplus and put pressure on prices.
Please see the annual report for additional details
Press contact
Head of Communications Ørjan Heradstveit
Telephone: 917 78 161
