Oil and gas activities, investments, Q1 2011

The investments for 2011 are now estimated at NOK 141.1 billion, which is NOK 9.7 billion lower than the estimate given in the previous quarter.

Final investments in 2010

Total investments in oil and gas extraction and pipeline transport for 2010 were NOK 125.4 billion. This is NOK 6.1 billion lower than the estimate conducted in the survey last quarter, but an increase of NOK 11.2 billion compared with the final investments in 2009. The decrease in 2010 is due to lower investments in all investment areas except pipeline transportation, which have the same level of investments as in 2009. The uncertainty regarding oil prices in the aftermath of the financial crisis resulted in many postponed investment projects. These postponements resulted in lower investment activity in 2010.

The final investments for exploration activity in 2010 came to NOK 25.5 billion. Compared with the final investment figures in 2009, the 2010 investments were NOK 2.4 billion lower. Compared with the previous quarter, the final figures were NOK 1.8 billion lower.

The decline from 2009 was mostly due to lower investments in field development. Investments in field development in 2010 came to NOK 30.4 billion; a decrease of NOK 6.2 billion compared with 2009. The Gjoa and Skarv projects had their peak investment year in 2009, and the investments on these projects were significantly lower in 2010.

Investments in fields on stream in 2010 amounted to NOK 62.2 billion. This is a NOK 1.3 billion decrease compared with final figures for 2009. The fields with the highest investments in 2010 were Ekofisk, Troll, Valhall and Oseberg.

Onshore activity and pipeline transportation in 2010 came to NOK 6.8 and 0.6 billion respectively.

Lower estimates for 2011

Total investments in oil and gas extraction and pipeline transport for 2011 are now estimated at NOK 141.1 billion. This is NOK 9.7 billion lower than the estimate conducted in the survey last quarter. Only projects with an approved Plan for Development and Operation (PDO) shall be included in the survey. In the previous survey, estimates were reported for projects that have not yet been approved by the government. These cost estimates are not included in the current survey. This is the main reason for the decrease in the estimate for 2011.

The estimate for 2011 is NOK 5.6 billion higher than the corresponding estimate for 2010 given in the 1st quarter of 2010.

Investments for field development and fields on stream are now estimated at NOK 106.4 billion.

This is NOK 7.3 billion lower than the estimate given in the previous quarter and NOK 4.2 billion higher than the corresponding estimate for 2010, given in the 1st quarter of 2010. The plans for the development projects Valemon, Jordbaer(Knarr), Eldfisk 2 and Ekofisk South have been sent to the government for approval. According to the plans, the investments in these projects will amount to NOK 10 billion in 2011. These investments will be included in the survey if and when these projects are approved by the government.

Investments for exploration activity in 2011 are estimated at NOK 28.4 billion. The estimate is NOK 3.9 billion higher than the corresponding estimate for 2010, given in the 1st quarter of 2010.

Onshore activities and pipeline transportation are estimated at NOK 5.7 and 0.7 billion respectively.

Tables:

• Table 1 Accrued and estimated investment costs. Extraction of crude petroleum and natural gas and transport via pipelines. 2006-2011. NOK million
• Table 2 Accrued investment costs for oil and gas exploration, by cost category. Q4 2008-Q4 2010. NOK million
• Table 3 Accrued investment costs for field development and fields on stream. Q4 2008-Q4 2010. NOK million
• Table 4 Estimated and accrued investment costs for oil and gas extraction and pipeline transport. 1985-2011