The petroleum resource account as of Dec. 31, 2006

The updated resource account shows that there is 8.6 billion Sm3 oil equivalents left to be produced and 50 discoveries yet to be approved for development.

The Norwegian Petroleum Directorate's (NPD's) resource account, which is now presented with updated figures as of December 31, 2006, is an overview of the estimated amounts of recoverable petroleum resources on the Norwegian continental shelf. Recoverable petroleum resources consist of both the original marketable and the remaining petroleum resources.

The resource estimates are based on reports submitted annually by the operating companies, NPD evaluations for fields and discoveries and NPD estimates of undiscovered resources. This years account also show the estimated geographical distribution for the North Sea, the Norwegian Sea and the Barents Sea.

The resources on the Norwegian continental shelf are classified according to maturity as shown in the NPD's resource classification system, reflecting the maturity, or project status, with regard to decisions to develop and produce the discovered petroleum quantities.

The total recoverable petroleum resources on the Norwegian Shelf as of December 31, 2006 are estimated to approximately 13 billion Sm3 oil equivalents (Sm3 o.e.). This figure is more or less identical to last years account. The resources have however matured although the account shows a slight decline in gross oil reserves.

The estimate of the undiscovered resources is 1260 million Sm3 oil, 265 million Sm3 condensate and 1875 billion Sm3 gas, a total of 3400 million Sm3 o.e. which represents 40 % of the remaining resources.

The remaining total recoverable resources are estimated to be 8.6 billion Sm3 o.e. with an uncertainty range from 6.0 to 12.3 billion Sm3 o.e.

In 2005 136.6 million Sm3 oil, 88 billion Sm3 gas, 17 million Sm3 NGL, and 8 million Sm3 condensate, totally 248.8 million Sm3 o.e., were sold and delivered. This is 8 million Sm3 o.e. less than in 2005.

6 new discoveries were made in 2006; 2 in the North Sea, 3 in the Barents Sea and 1 gas discovery in the Norwegian Sea. The expected volume of the new discoveries is estimated to 21 million Sm3 oil and 10 billion Sm3 gas. The evaluation of the size of the discoveries is however ongoing and the figures are therefore very uncertain. Compared to 2005, this gives an decrease in resource growth.

As of December 31, 2006 eight fields were being developed; Alvheim, Blane, Enoch, Ormen Lange, Snøhvit, Tyrihans, Vilje og Volve. All these fields except Tyrihans are planned to start production in 2007.

Net remaining reserves in fields have been decreased with 239 million Sm3 o.e. compared with the last years account - despite reserve increases on several fields and maturing projects. Gross reserves increased with 10 million Sm3 o.e.

There has been a marked increase in gross reserves during 2005. This increase totals 281 million Sm3 o.e. Approval of development plans account for 159 million Sm3 o.e of this increase. The rest, 122 million Sm3 o.e, is due to maturing a vast number of projects with contingent resources to reserves.

Accumulated gross oil reserve growth since 2005 is now 135 million Sm3 oil. 154 million Sm3 were booked in 2005. The account for 2006 shows a reduction of 18 million Sm3 oil. The accumulated growth now stands for 17 percent of the authorities new goal of adding 5 billion barrels of oil to the reserve base before 2015. This is down from 19 percent in the 2005 account.

Contingent resources in fields (RK4-7) have been increased with 82 million Sm3 o.e. The reason for this increase is a vast maturing of projects in existing fields combined with new projects which will contribute to increased recovery in the future.

Contingent resources in discoveries (not yet approved for development) constitute 152 million Sm3 oil, 424 billion Sm3 gas, 22 million tons NGL, and 35 million Sm3 condensate, in total 654 million Sm3 o.e. This is a reduction of 73 million Sm3 o.e. compared with last years estimate. This reduction is due to the fact that the discoveries 15/12-12 Rev, 24/9-5 Volund, 35/8-1 Vega, 35/9-1R Gjøa og 6507/3-1 Alve, which all were in the planning phase are now classified as reserves. 50 discoveries are not yet approved for development (resource categories 4F, 5F and 7F). 98 discoveries are included in other fields or discoveries.

Original in-places resources for fields are included in the downloadable file. These figures represent how much oil and gas was originally in-place before production start and includes produced volumes, planned production, and volumes that with the current plans will not be produced. There are alternative methods of calculating the in-place volumes. The figures are therefore not necessarily comparable between fields.

Kontaktperson i OD:
Marit Arnesen, tlf. +47 51 87 64 33