Activity on the Norwegian continental shelf final 12 months remained at a excessive stage, regardless of the continuing pandemic. The 12 months has been characterised by excessive manufacturing and important investments in developments and tasks on the fields.
14 discoveries have been made, and four new fields got here on stream. Substantial sources stay in each fields and discoveries, and there’s nonetheless extra to be present in all sea areas.
“While 2020 has been an uncommon 12 months in some ways with the pandemic and the decline in oil costs, investments on the Shelf are on the identical stage as earlier years”, Director common Ingrid Sølvberg in The Norwegian Petroleum Directorate (NPD) says.
• Many discoveries
31 exploration wells have been spudded in 2020. 14 discoveries have been made, 7 within the North Sea and seven within the Norwegian Sea. Around 50 exploration wells have been deliberate final 12 months. Some of those have been postponed, primarily because of the pandemic. This 12 months, the NPD expects round 40 exploration wells shall be drilled.
The corporations have exhibited nice curiosity in exploring in mature areas, and there have been many candidates within the APA spherical (Awards in Predefined Areas) introduced within the autumn. Awards will in all probability be introduced within the close to future.
• Small discoveries additionally create worth
History over the previous 20 years has proven that smaller discoveries, with volumes as much as 25 million commonplace cubic metres of oil equal (MSm3 o.e.), collectively contribute to extra worth creation than the bigger discoveries made throughout the identical interval.
Unit prices inform us one thing about profitability. This is the price per barrel, and it contains all prices related to exploration, growth and operation.
According to the NPD’s calculations, the typical unit value for discoveries within the interval from 2010-2019 is USD 21 per barrel, whereas the typical oil value throughout the identical interval was almost USD 80 per barrel. This distinction underlines the huge values generated in the course of the interval.
• Record variety of fields in operation
There have been 90 producing fields on the Norwegian shelf at year-end. Four fields got here on stream final 12 months – Tor, Skogul, Ærfugl and Dvalin. All 4 utilise current infrastructure in mature elements of the Shelf.?
These are the varieties of area developments we’ll see much more of sooner or later. Therefore, it’s important that the infrastructure is maintained and made obtainable for phase-in of further sources.
• High manufacturing
As anticipated, oil manufacturing was greater in 2020 than the earlier 12 months. Production from the Johan Sverdrup area is crucial cause for this.
Production in 2020 was considerably decrease than the NPD anticipated because of the manufacturing regulation launched final summer time, mission postponements, in addition to the shutdown on Snøhvit and the market scenario for fuel.
Oil manufacturing is anticipated to rise over the following few years from the present 1.7 million barrels per day to greater than 2 million barrels per day in 2025.
Gas accounts for simply over half of petroleum manufacturing. This manufacturing has held regular at a excessive stage for a few years, and this can proceed for the following eight to 10 years.?
• Improved restoration
One of the most important IOR tasks on the Norwegian shelf lately, Snorre redevelopment, got here on stream in 2020.
Recovery from the sector will improve by greater than 31 million Sm3?o.e. (195 million barrels) of oil. This represents a rise in reserves of round ten per cent, or volumes equal to 1 Goliat area. With this, the restoration charge on Snorre will rise from 46 to greater than 51 per cent.
Drilling growth wells is a crucial measure to take care of and prolong manufacturing on the fields. We are presently in a interval with traditionally excessive ranges of drilling exercise. The variety of growth wells has diverse between 150–200 lately.
• Lower emissions
Petroleum manufacturing will improve within the years to come back, whereas on the identical time, emissions have…

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