Oil and gas activities, investments, Q3 2004

Compared with corresponding estimates for 2003, given in the third quarter 2003, the estimate for 2004 indicates an increase of 10.5 per cent from 2003 to 2004. The estimate for 2005, compared with the corresponding estimate for 2004, indicates an additional increase of 17.8 per cent from 2004 to 2005.

Estimates for 2004: Increasing investments for field development

Total investments in oil and gas activity for 2004, including pipeline transportation, are now estimated at NOK 74.0 billion. Compared with the estimate given in the previous quarter, the estimates have increased by NOK 2.8 billion. The increase is mainly related to field development and onshore activity, whilst the estimates for fields on stream are downward adjusted.

Investments for exploration activity in 2004 are now estimated at NOK 4.5 billion. The estimates given in August are normally a few per cent higher than the final investments for the year. This indicates that the investments for exploration activity in 2004 will be at the same level as in 2003.

Investments for field development and fields on stream are now estimated at NOK 48.2 billion. The estimates for field development have increased from NOK 10.8 billion to 14.9 billion due to new projects and adjusted budgets.

Onshore activities and pipeline transportation are estimated at NOK 14.3 and 7.1 billion respectively.

Estimates for 2005: Record high estimates

Total investments in oil and gas activities for 2005, including pipeline transportation, are estimated at the high level of NOK 78.6 billion. This is the highest estimate given at such an early stage related to the final investments, measured in current prices, since Statistics Norway started collecting estimates in 1985. If one look at final investments, only one year has had investments above this estimate for 2005. In 1998 the final total investments were NOK 79.2 billion.

Investments for exploration activity in 2005 are estimated at NOK 7.2 billion. Compared with the corresponding estimate for 2004, given in the third quarter 2003, the 2005 estimate is NOK 0.3 billion lower.

Investments for fields are estimated at NOK 53.7 billion. This is NOK 9.9 billion higher than the corresponding estimate for 2004 given in the third quarter 2003. The increased level of investments is partly due to the field development on Ormen Lange.

Onshore activities and pipeline transportation are estimated at NOK 7.5 and 10.2 billion respectively.

Tables:

• Table 1 Accrued and estimated investment costs. Extraction of crude petroleum and natural gas and transport via pipelines. 2000-2005. NOK million
• Table 2 Accrued investment costs for oil and gas exploration, by cost category. Q2 2002-Q2 2004. NOK million
• Table 3 Accrued investment costs for field development and fields on stream. Q2 2002-Q2 2004. NOK million
• Table 4 Estimated and accrued investment costs for oil and gas extraction and pipeline transport. 1985-2005