"The cash flow in the second quarter of 2024 remains high, despite being nine billion kroner lower than the same period last year. The decline was primarily caused by lower gas prices. We're closing the books on a quarter of stable, good operations in our licences. This is the veritable backbone of a strong and competitive NCS over the long term," says Kristin F. Kragseth, CEO of Petoro.
Ownership swaps bolster long-term strategy
In late June, Petoro and Equinor signed off on extensive ownership swaps. This agreement will ensure increased value creation and more effective resource management for the company's activities on the Halten Bank.
"We have a long-term strategy where, among other things, we work to create more investment opportunities in mature fields and find good area solutions. This agreement will lead to increased harmonisation and equalisation of crucial participating interests in the Heidrun and Kristin/Tyrihans areas. This will contribute to more comprehensive and profitable development of these fields in the best interests of all involved partners and for society," Kragseth says.
Result as of the 2nd quarter
So far this year, five serious incidents have been registered in the SDFI portfolio, which yields a serious incident frequency of 0.53 over the last 12 months, which is on par with the same period last year. The personal injury frequency is 4.2, compared with 4.0 in the same period last year.
Net cash flow to the state from the SDFI as of the second quarter of 2024 totalled NOK 114 billion. Total production amounted to 1,082 million barrels of oil equivalent per day (kboed), an increase of 78 kboed compared with the same period last year. Gas production amounted to 116 million standard cubic metres (mill. scm) per day, up 13 per cent compared with the second quarter of last year. The average realised gas price was NOK 3.84 per scm, compared with NOK 6.34 in the same period last year. Liquids production totalled 352 kboed, a reduction of 6 kboed compared with the second quarter of 2023. The average realised oil price was USD 85, compared with USD 80 per barrel in the same period last year.
Rystad Energy has conducted a valuation of the SDFI portfolio on assignment from the Ministry of Trade, Industry and Fisheries. The report was published in June and values the portfolio at NOK 1,486 billion. The last valuation took place in 2022.
"Overall for years 2022 and 2023, we've delivered more than 800 billion kroner in cash flow from the state's assets (SDFI). This cash is deposited in the Government Pension Fund Global (the Oil Fund) and helps keep Norway a welfare state. The direct state ownership in the petroleum activities will benefit both current and future generations for several decades to come," Kragseth says.
Press contact
Ørjan Heradstveit
Head of Communications
+47 917 78 161
orjan.heradstveit@petoro.no
