Lower gas prices and higher investments reduced the total cash flow by NOK 57 billion from the previous year. The reason for the lower gas prices is complex, but the primary cause was lower demand, large LNG imports and high storage levels in Europe.
Good operations in the portfolio
"In spite of the reduction compared with 2023, the cash flow is still the third-highest in Petoro's history. A lot of good work is being done in our industry, and we're closing the books on yet another year of good operations and high production on the fields we participate in," says Kristin F. Kragseth, Petoro CEO.
Total production reached 1,063 thousand barrels of oil equivalent per day (kboed), an increase of 70 kboed compared with the previous year. Gas production amounted to 113 million standard cubic metres (mill. scm) per day, an increase of eleven per cent compared with the year before.
"This increase was primarily caused by higher gas production from Troll following a capacity increase at Kollsnes, but also good and stable production from fields such as Oseberg and Dvalin," Kragseth says.
Oil production has dropped by one thousand barrels of oil equivalent. This reduction was primarily caused by natural production decline and turnarounds on multiple mature fields, but this effect was partly offset by new production from the Breidablikk field.
The powerhouses keep delivering
The Troll field in the North Sea delivered a historic production record with 42.5 billion standard cubic metres of gas in 2024, an increase of nearly 10 per cent from the previous record in 2022. The Johan Sverdrup field also set a record and produced an average of 755,000 barrels of oil per day.
These fields have delivered impressive results and the company's Licence and Technology department has contributed new ideas and innovative solutions in close cooperation with operators and partners.
"The Troll field has continued to maximise value creation through accelerated gas extraction, and Johan Sverdrup, with its phase 3 expansion, has reached crucial milestones and contributed to stable and increasing production," Kragseth says.
Lower emissions with power from shore
Petoro is planning major investments in emission-reducing measures in existing facilities, with the goal of reducing scope 1 emissions from the portfolio by 55 per cent by 2030, and near-zero emissions by 2050. The measures sanctioned so far will reduce emissions by about 30 per cent from the 2005 reference year.
It will be challenging to achieve these ambitious goals. Electrification of Halten, Tampen and Grane is in an early planning phase, and the state has given the green light for announcing early agreements to expedite the start-up of new projects in these areas. The licensees in these three projects are working toward a potential investment decision in the first quarter of 2026, with associated start-up from 2030.
"Electrifying selected installations with power from shore is the most important climate measure if we're going to reach our goals," Kragseth says.
Petoro achieved a net reduction of seven per cent in CO
2 emissions from 2023 to 2024. This is a result of the Troll B and C platforms being partly electrified, the shutdown of the Heimdal field and optimised operations on several fields.
It's up to us
In an age of substantial geopolitical unrest, Norway is playing a key role for European energy security through secure and stable gas supplies to mainland Europe.
As the steward of about 30 per cent of the remaining resources, Petoro will be a driving force in the cooperative effort to ensure that the NCS delivers on its mission. This requires continuous efforts and engagement.
The positive results from operations in 2024 stand in contrast to increasing cost challenges and lack of industrial improvement in a few of our core processes, such as the drilling area. Multiple factors indicate that, once again, we’re heading into a period where stronger measures will be necessary, as continuous improvement alone will not be sufficient. As opposed to the situation in 2014 with low product prices, we need to create this sentiment ourselves.
"One important factor is acknowledging the weak reserve replacement rate we've been struggling with on the NCS for many years. Of course we're hoping for new, major discoveries, but until then, we need to make sure that we're doing everything we can with the resources we have. Along with operators and our other partners, Petoro will be a constructive partner in creating industrial improvements, Kragseth says.
In 2025, Petoro plans to invest about NOK 33 billion in projects we are involved in.
Financial results
Net cash flow to the state from the SDFI at year-end amounted to NOK 220 billion, 57 billion lower than the previous year. This cash flow reduction was primarily caused by lower gas prices and higher investments. The decline was partly offset by increased gas sales and lower expenses for purchasing third-party gas. In spite of the significant reduction compared with 2023, the cash flow for the year is still the third-highest in Petoro's history.
Total production reached 1,063 thousand barrels of oil equivalent per day (kboed), an increase of 70 kboed compared with the previous year.
Gas production amounted to 113 million standard cubic metres (mill. scm) per day, an increase of eleven per cent compared with the year before. This increase was primarily caused by higher gas production from Troll following a capacity increase at Kollsnes, but also robust and stable production from fields such as Oseberg and Dvalin. The average realised gas price was NOK 4.50, compared with NOK 5.76 per scm the previous year. The reason for the lower gas prices is complex, but the primary cause was lower demand, high LNG imports and high storage levels in Europe.
Liquids production amounted to 354 kboed, a reduction of 1 kboed compared with the previous year. The reduction in liquids production was primarily caused by natural production decline and turnarounds on multiple mature fields. This effect was partly offset by new production from Breidablikk, which started up in 2023. The average realised oil price was USD 82, compared with USD 83 per barrel the previous year. Measured in Norwegian kroner (NOK), the oil price was 871, compared with NOK 876 per barrel the previous year. The marginal reduction in the oil price compared with the previous year was caused by growth in global oil production and lower growth in demand, but this effect was offset by voluntary production restrictions among OPEC+ members and higher geopolitical risk.
Please see the annual report for additional details.
Press contact
Head of Communications Ørjan Heradstveit
Telephone +47 917 78 161
