Cash flow to the government came to NOK 37.3 billion, down by NOK 5.6 billion from the first quarter of 2012. Income after financial items was NOK 36.2 billion, compared with NOK 43 billion for the first three months of last year. Operating income came to NOK 36.2 billion, as against NOK 44.1 billion for the same period of 2012.
Total oil and gas production for the first quarter declined by 15 per cent to an average of 1 121 000 barrels of oil equivalent per day (boe\/d), compared with 1 319 000 for the same period of 2012. Gas production was down by 19 per cent from the first quarter of last year. The most important reason for this change was operating problems on the Troll and Sn\u00f8hvit gas fields. Production of oil and natural gas liquids (NGL) fell by 10 per cent, primarily because of delayed completion of wells on Troll and reduced output from mature fields.
\u201cThe fact that we still delivered NOK 37.3 billion to the government for the first quarter, even after a decline of almost 20 per cent in output and lower prices, demonstrates substantial robustness in the portfolio,\u201d says Pedersen in his last comment on the SDFI\u2019s results before retiring on 11 June.
\u201cI\u2019m nevertheless disappointed that we have yet again witnessed a lengthy shutdown of the Sn\u00f8hvit facility at Melk\u00f8ya outside Hammerfest. The operating problems on Sn\u00f8hvit and Troll remind us of the importance of measures aimed precisely at maintaining and extending profitable production from reservoirs and facilities on the large mature fields.\u201d
Pedersen notes that the issue of securing value in the mature fields has climbed higher up the industry\u2019s agenda in recent years.
\u201cI\u2019m proud to be able to say that Petoro has contributed to this development. At the same time, I see substantial challenges in the combination of a high level of activity, increased capital discipline and efficiency, and competition to be the best project in the large portfolios held by the companies. I\u2019m therefore unsure whether bigger investment in a mature field \u2013 even if it is time-critical \u2013 will come high enough up licensees\u2019 ranking lists in a period with many other opportunities.\u201d
He highlights the choice of concept this summer for further development of Snorre as the first big test. \u201cAs licensees, we face a crossroads here where the size of investments determines how big additional profitable reserves we can get out of the field.”<\/p>\n\n\n\n
Contact:
Sveinung Sletten<\/strong>, head of communications
Petoro AS
+47 51 50 20 24\/+47 95 07 55 54
sveinung.sletten@petoro.no<\/a><\/p>\n\n\n\n