Oil and gas activities, investments, Q2 2001

Estimates 2001

The total investments in oil and gas extraction and pipeline transportation for 2001 are now estimated at NOK 53.0 billion. This is an upward adjustment of NOK 2.3 billion from estimates given in the 1st quarter. The new estimate is only NOK 0.6 billion below the final figures from 2000.

Estimates for investments in exploration activity increase by NOK 0.6 billion and are now estimated at NOK 5.9 billion. The final figures from the 1st quarter of 2001 show a small decrease in investments compared with the 4th quarter of 2000 and ended at NOK 1.6 billion. This is still high compared with figures from previous quarters.

Investments for field development have a clear declining tendency, even though the estimates have been increased compared with the previous quarter. The estimated investments for field development in 2001 are now NOK 18.4 billion. This is NOK 4.4 billion lower than the final figures from 2000, which were unusually low compared with figures from previous years.

Investments for fields on stream have been downward adjusted by 0.6 billion to NOK 26.3 billion. This is still fairly high compared with recent years. There seems to be a connection between the decrease in investments for field development and the increase in investments for fields on stream. What happens is that new fields to a larger extent are built in connection with an existing installation in order to reduce investments for infrastructure. This gives lower investments for field development and higher investments for fields on stream.

Estimates 2002

In the 2nd quarter we collect figures for 2002 for the first time. These figures are rather uncertain. Total investments for 2002 are reported to be NOK 28.4 billion. This figure is NOK 5.2 billion below the corresponding figures for 2001 given in May 2000.

Investments for exploration activity are reported to be NOK 2.9 billion, but here the companies have not been able to give complete information. New exploration licenses along with a high price of oil may however contribute to a high level of activity.

When it comes to investments for field development, these are estimated to be NOK 10.5 billion. This is 3.1 billion lower than the estimate for 2001. This is however figures that might increase. If BP-Amoco decides to build the Skarve-structure as an independent field development, this may lead to increased investments, even though the main investments will not take place till 2003 or later.

Tables:

• Table 1 Accrued and estimated investment costs. Extraction of crude petroleum and natural gas and transport via pipelines. 1996-2002. Million NOK
• Table 2 Accrued investment costs for oil and gas exploration, by cost category. Q1 1999 - Q1 2001. Million NOK
• Table 3 Accrued investment costs for field development and fields on stream. Q1 1999 - Q1 2001. Million NOK
• Table 4 Estimated and accrued investment costs for oil and gas extraction and pipeline transport. 1985-2002