Oil and gas activities, investments, Q1 2012

The estimate for 2012 is NOK 1.5 billion higher than the estimate given in the previous quarter.

Final investments in 2011

Total investments in oil and gas extraction and pipeline transport for 2011 were NOK 146.3 billion. This is NOK 6.3 billion lower than the estimate conducted in the survey last quarter, but an increase of NOK 20.9 billion compared with the final investments in 2010. The increase in 2011 is due to higher investments in all investment areas except onshore activity and pipeline transportation.

In 2010, investments declined for the first time since 2002, from a level of NOK 135.8 billion in 2009. One of the contributing causes of the decline was the drop in oil prices in the wake of the financial crisis in 2008. Final investments for 2011 and estimates for 2012 indicate that a similar trend of increasing investments to those before 2010 continues.

The final investments for exploration activity in 2011 came to NOK 27.4 billion. Compared with the final investment figures in 2010, the 2011 investments were NOK 1.9 billion higher. Compared with the previous quarter, the final figures were NOK 1.8 billion lower.

Final investments in field development and for 2011 came to NOK 37.5 billion. This is a NOK 7.1 billion increase compared with final figures for 2010. The fields with the highest development activity in 2011 were Skarv, Goliat and Gudrun.

Fields on stream in 2011 came to NOK 75.5 billion; an increase of NOK 13.3 billion compared with the previous year. The producing fields with the highest investment activity in 2011 were Ekofisk, Troll and Åsgard.

Onshore activity and pipeline transportation in 2011 came to NOK 5.4 and 0.5 billion respectively.

Upward adjusted estimate for 2012

Total investments in oil and gas activities for 2012, including pipeline transportation, are estimated at NOK 186 billion. The estimate is NOK 1.5 billion higher than the estimate given in the previous quarter and NOK 44.9 billion higher than the corresponding estimate for 2011, given in the 1st quarter of 2011.

The investments for exploration activity in 2012 are now estimated at NOK 29.5 billion. This is NOK 1.1 billion higher than the corresponding estimate for 2011. The estimate is NOK 2.9 billion lower than the estimation for 2012 given in the fourth quarter of 2011.

Investments for field development are now estimated at NOK 53.1 billion; an increase of NOK 2.1 billion compared with the estimate in the previous quarter. The main reason for the increase is that the new project Jette has been included in the survey this quarter. The estimate is NOK 24.2 billion higher than the corresponding estimate given for 2011. All the new development projects initiated in 2011 are expected to have significantly higher investment activity in 2012. In addition, large fields, such as Goliat, Gudrun and Ekofisk South, will reach their investment peak next year according to plan.

Investments for fields on stream are now estimated at NOK 98.2 billion. This is NOK 1.9 billion higher than the estimate given in the previous quarter and NOK 20.8 billion higher than the corresponding estimate given for 2011 in the first quarter of 2011. The producing fields with the highest investment activity in 2012 are Troll, Ekofisk and Oseberg.

Onshore activities and pipeline transportation are estimated at NOK 4.8 and NOK 0.4 billion respectively.

Tables:

• Table 1 Accrued and estimated investment costs. Extraction of crude petroleum and natural gas and transport via pipelines. 2007-2012. NOK million
• Table 2 Accrued investment costs for oil and gas exploration, by cost category. Q4 2009-Q4 2011. NOK million
• Table 3 Accrued investment costs for field development and fields on stream. Q4 2009 - Q4 2011. Million NOK
• Table 4 Estimated and accrued investment costs for oil and gas extraction and pipeline transport. 1985-2012