Norway Production Costs Rising

Thursday, March 7, 2019

Petroleum production costs on the Norwegian continental shelf rose in 2018 after falling for three consecutive years, state-owned oil firm Petoro said on Thursday.

Cost cuts were high on oil firms' agenda following a sharp fall in crude prices in 2014, making it possible to develop discoveries that had previously been considered too expensive, including Equinor's Arctic Johan Castberg field.

Oil prices have partly recovered however, and cost inflation has thus returned.

"The positive trend of reduction in production costs have reversed and costs increased in 2018," Petoro, which manages the Norwegian government's stakes in offshore licenses, said in its annual report.

Adjusted production costs, including operating and maintenance costs, rose by 7 percent year-on-year, driven by higher power and carbon emission prices, as well as generally higher costs of operating fields, it added.

Petoro is not itself an operator, but is a partner in a large number of licenses, including fields operated by Norway's largest oil and gas firm Equinor. 


(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)

Categories: Finance Offshore Energy Arctic Europe Production

Related Stories

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Fugro Expands Geotechnical Testing Capabilities in Indonesia

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

CNOOC Puts Into Production New Oil Field in South China Sea

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

Keel Laying for Wind Flyer Trimaran Crew Boat

All Gas from Conrad’s Mako Field to be Sold to Indonesia’s PLN

Valeura Wraps Up Infill Drilling Campaign in Gulf of Thailand

Current News

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Woodside Agrees Long-Term LNG Supply with Petronas Unit

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com