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

Oil Drops 7% After Trump Predicts War Could End Soon

Valeura Lifts Output with Three Producing Wells at Thailand’s Manora Field

Subsea7 Extends Engagement on Türkiye’s Sakarya Field with New Deal

Oil Prices Go Up 3% as Iran Crisis Disrupts Supply

Saipem Agrees $272M Deal to Acquire Deep Value Driller Drillship

JERA Lifts First LNG Cargo From Barossa Gas Project in Australia

Viridien Kicks Off Multi-Client Reimaging Program off Malaysia

Offshore Rig Outlook: As 2025 Challenges Fade, Path Ahead Brightens

Following Big Loss in 2025, Oil Steadies

Saipem Nets Multibillion-Dollar Job at World's Largest Offshore Gas Field

Current News

Petronas Makes New Hydrocarbon Discovery in Southeast Asia

PTTEP Picks Everllence Compressors for Thailand’s Offshore CCS Project

IEA Unleashes Record 400M Barrel Oil Stockpile Release Amid Iran War Disruptions

OneSubsea Bags Third PTTEP Subsea Systems Contract in One Year

Iran War Exposes Risks of Fossil Fuel Dependence

Sunda Energy Secures Environmental License for Drilling Ops off Timor-Leste

Oil Drops 7% After Trump Predicts War Could End Soon

Aramco Warns of Severe Oil Market Fallout from Hormuz Blockade

Offshore Tech: Seadrill Adopts igus’ Modular Energy Chains

OSV Market: Asia Pacific Downshifts for the Long Haul

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