The improvement in results since 2010 primarily reflects higher oil and gas prices. A barrel of oil cost NOK 606 (USD 106) on average during the first quarter, up by 35 per cent in NOK from the same period of last year. Gas prices also strengthened.<\/p>\n\n\n\n
Total oil and gas production for the first quarter averaged 1.23 million barrels of oil equivalent per day (boe\/d), compared with 1.28 million for the same period of 2010.
Gas production was on a par with the first quarter of last year. Output of oil and natural gas liquids (NGL) fell by 11 per cent, primarily reflecting a decline in production from mature fields and operational challenges on Gullfaks.<\/p>\n\n\n\n
\u201cWe\u2019ve had a good start to the year in financial terms, but the high prices conceal operational challenges which call for great attention,\u201d says Mr Pedersen. He is otherwise very pleased with the discovery made on the Skrugard prospect, which has helped to generate renewed optimism in the Barents Sea. Petoro holds 20 per cent of this licence.<\/p>\n\n\n\n
At the 10-year milestone, Mr Pedersen takes a look back and comments that it is not easy to grasp how large an amount NOK 1 000 billion actually represents. \u201cYou can take out your calculator, of course, and convert this huge sum into nursing homes, tunnels or opera buildings. \u201cBut it\u2019s perhaps by comparing progress for purchasing power, jobs and prosperity in relation to countries we like to compare ourselves with that we can see the difference petroleum revenues have made to our community.\u201d<\/p>\n\n\n\n
He is happy with the progress Petoro has made since he was issued with a keycard bearing employee number 1 in the late summer of 2001. \u201cWe were the new kid on the block, who had to elbow our way in among all the big boys and girls. Some predicted a short life for us. Today, I find that we\u2019re respected as a clear and constructive business partner and investor on the NCS.\u201d<\/p>\n\n\n\n
Mr Pedersen says that the company early on saw that much of its expertise and capacity had to be devoted to ensuring efficient operation of and improved recovery from the big mature fields, where the SDFI has big holdings.<\/p>\n\n\n\n
\u201cOn that basis, we\u2019ve involved ourselves with integrated operation for efficient collaboration between platform and land, and we\u2019ve been the prime mover for big water injection projects. We\u2019ve also looked at other methods for improved recovery and faster drilling, and we\u2019ve contributed to ensuring the sale of large volumes of Norwegian gas.\u201d<\/p>\n\n\n\n
Mature fields are now the centrepiece of Petoro\u2019s strategy, and the company is devoting much of its resources to helping find solutions which ensure maximum economic recovery and long producing lives for a number of large fields on the NCS. \u201cIf we\u2019re going to put ourselves in the best possible position to achieve that, the licensees \u2013 including us \u2013 must take key decisions over the next three-four years,\u201d says Mr Pedersen. \u201cThat includes major investment projects on mature fields.\u201d<\/p>\n\n\n\n
Contact:
Sveinung Sletten<\/strong>
Head of communications, Petoro AS
Office: +47 51 50 20 24
Mobile: +47 95 07 55 54
E-mail: sveinung.sletten@petoro.no<\/p>\n\n\n\n