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

MODEC Forms Dedicated Mooring Solutions Unit

Eneos Warns on Skyrocketing Costs fo Offshore Wind

Sponsored: Record Deals and Record Attendance Underscore ADIPEC’s Global Impact

Major Oil and Gas Projects Drive Strong OSV Demand in the Middle East

US Pressure on India Could Propel Russia's Shadow Oil Exports

Eni-Petronas Gas Joint Venture Up for Launch in 2026

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Saipem Bags $1.5B Contract for Türkiye Largest Offshore Gas Field

TotalEnergies Inks 10-Year LNG Supply Deal with South Korea’s KOGAS

Current News

Eni Makes Significant Gas Discovery Offshore Indonesia

Petronas Enlists MISC for FPU Job at Gas Field Offshore Brunei

Japan’s JERA Signs First Long-Term LNG Deal with India’s Torrent Power

India's ONGC Set to Retain 20% stake in Russia's Sakhalin-1 Project

Harbour Energy to Sell Stakes in Indonesian Assets to Prime Group for $215M

Eni Expands Asian Footprint with Long-Term LNG Contract in Thailand

Finder Energy Buys Petrojarl I FPSO for Timor-Leste Oil and Gas Projects

CNOOC Puts New South China Sea Development Into Production Mode

ADES Nets $63M Contract for Compact Driller Jack-Up off Brunei

Mubadala Energy, PLN Energy Primer Team Up for Andaman Sea Gas Supply

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