{"id":3194,"date":"2010-11-10T12:24:00","date_gmt":"2010-11-10T11:24:00","guid":{"rendered":"https:\/\/petoro.wpenginepowered.com\/nyhet\/hoy-kontantstrom-urovekkende-utvikling-i-produksjon-og-investeringer\/"},"modified":"2026-03-12T11:15:07","modified_gmt":"2026-03-12T10:15:07","slug":"hoy-kontantstrom-urovekkende-utvikling-i-produksjon-og-investeringer","status":"publish","type":"nyhet","link":"https:\/\/petoro.no\/en\/nyhet\/hoy-kontantstrom-urovekkende-utvikling-i-produksjon-og-investeringer\/","title":{"rendered":"High cash flow \u2013 worrying trends for production and investment"},"content":{"rendered":"\n
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\u201cNOK 78 billion is a very large amount,\u201d says Kjell Pedersen, chief executive of Petoro AS, which manages the State\u2019s Direct Financial Interest (SDFI) in the petroleum sector. \u201cIt accordingly seems odd to say that I\u2019m not fully satisfied with the results achieved so far in 2010. \u201cUnderlying the figures is a continued sharp decline in oil production from our large mature fields and an investment trend which shows that we\u2019re failing to meet the planned level of activity. \u201cAgainst that background, I\u2019m not satisfied with the results we\u2019re now presenting from the operation of the government\u2019s oil and gas portfolio.\u201d<\/p>\n\n\n\n

The decline in production during the third quarter compared with the same period of last year is largely due to more extensive maintenance turnarounds than usual on a number of fields. Mr Pedersen is less concerned about planned short-term cuts to output. But he says it is worrying that the number of new production wells being drilled on some of the largest oil fields has halved over the past eight years. And other investments and activities are falling behind schedule.<\/p>\n<\/div>\n<\/div>\n\n\n\n

\u201cWe\u2019ve seen a decline in oil production from the Norwegian continental shelf (NCS) since 2001,\u201d he points out. \u201cThat\u2019s a natural part of field maturation. \u201cBut output is falling faster than expected by the operators and their licence partners. The main reason is that we\u2019re not completing enough new wells to compensate for reduced flow from the older producers.\u201d<\/p>\n\n\n\n

Together with delays to other activities, this means that overall investment in six important mature fields could be 25 per cent lower than planned for 2010, he notes. \u201cSpending on production drilling for the same fields looks like being more than 30 per cent below the planned level. That\u2019ll also be negative for future output. \u201cWe must revise the way we continue developing and operating the major mature fields. Without such change, we not only risk losing possible additional resources but also run a considerable risk of failing to secure reserves we\u2019ve expected to recover.\u201d<\/p>\n\n\n\n

Mr Pedersen accepts that it is difficult to win full understanding in the industry and the community at large that not enough is being done on the mature fields, as long as the level of activity in and spending by the petroleum industry remains high.<\/p>\n\n\n\n

\u201cMy point is that we\u2019re not managing to implement planned investments and measures on fields where such action is critical in terms of timing for recovering all the resources. Investing adequately today lays the basis for higher output and revenues for many years to come. If we wait too long, it\u2019ll be unprofitable to spend on major modifications and conversions. In such a case, major assets will be lost. But it would also be pointless simply to pour in cash. We must be smarter and get a better return on the money we spend.\u201d<\/p>\n\n\n\n

Contact:<\/strong>
Sveinung Sletten, vice president external affairs
Office: +47 51 50 20 24
Mobile: +47 95 07 55 54<\/p>\n\n\n\n