Resource accounts per 31 Dec. 2016

21.02.2017
The Norwegian Petroleum Directorate’s (NPD’s) estimate for total proven and unproven petroleum resources on the Norwegian continental shelf is about 14.3 billion standard cubic metres of oil equivalents.

Of this, 48 per cent has been sold and delivered. About 39 per cent of the total remaining resources have not been proven.

This article also includes a summary of the NPD’s resource accounts according to the United Nations Framework Classification System 2009.

Resources is a general term for all oil and gas that can be recovered. Resources are classified according to how mature they are with regard to development and production. The main classifications are reserves, contingent resources and unproven resources. What has been produced, sold and delivered is the aggregate production.

 

Total resources

The Norwegian Petroleum Directorate’s base estimate for total proven and unproven petroleum resources on the Norwegian continental shelf is about 14.3 billion standard cubic metres of oil equivalents (Sm3 o.e.). Of this, 6.9 billion Sm3, or 48 per cent, have been sold and delivered.

It is assumed that 7.4 billion Sm3 o.e. remain to be produced. Of this, 4.6 billion Sm3 o.e. are proven resources. The estimate for unproven resources is 2.9 billion Sm3 o.e. Unproven resources constitute about 39 per cent of the total remaining resources.

 

 

Petroleum resources and estimate uncertainty
per 31 Dec 2016

 

Petroleum resources and estimate uncertainty at 31 Dec. 2016

 

 

Petroleum resources on the Norwegian Continental shelf
per 31 Dec 2016


Oil
mill. Sm3
Gas
bill. Sm3
NGL
mill. tonn
Condensate
mill. Sm3
Sum o.e.
mill. Sm3
Produced 4169.4 2217.1 189.7 115.6 6862.6
Reserves* 991.0 1782.2 112.2 22.7 3009.1
Contingent resources in fields 350.5 246.3 21.1 2.7 639.6
Contingent resources in discoveries 367.4 299.5 14.3 3.4 697.5
Production not evaluated (RC 7A) 145.0 60.0

205.0
Undiscovered resources 1285.0 1465.0
120.0 2870.0
Total 7308.3 6070.2 337.3 264.4 14283.8
* Includes resource classes 1, 2 and 3

 

 The Norwegian Continental Shelf - Changes from 2015


Change Oil y-o-y
mill. Sm3
Change Gas y-o-y
bill. Sm3
Change NGL y-o-y
mill. tonn
Change Condensate y-o-y
mill. Sm3
Change Sum y-o-y
mill. Sm3
Produced 94.0 116.8 10.2 1.9 232.1
Reserves* -32.0 -74.2 -4.0 -5.4 -119.2
Contingent resources in fields 22.4 24.5 -1.2 0.5 45.1
Contingent resources in discoveries -7.7 -23.4 -0.4 -9.6 -41.6
Production not evaluated (RC 7A) -10.0 0.0 0.0 0.0 -10.0
Undiscovered resources -30.0 -20.0 0.0 0.0 -50.0
Total 36.7 23.6 4.7 -12.6 56.5
* Includes resource classes 1, 2 and 3

 

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Total petroleum resources on the Norwegian continental shelf at 31 Dec. 2016

Total petroleum resources on the Norwegian continental shelf as of 31 Dec. 2016 – oil and condensate – are measured in million standard cubic meters. NGL is measured in million tonnes, and gas is measured in billion standard cubic metres. The conversion factor for NGL tonnes to Sm3 is 1.9. Total oil equivalents are measured in million Sm3 o.e.

 

Reserves

Reserves are remaining recoverable petroleum volumes, for which a production decision has been made. This includes both resources for which the authorities have approved a Plan for Development and Operation (PDO) and resources the licensees (companies in the production licence) have decided to produce, but have not yet obtained the required permits from the authorities for.

At the end of the year, reserves amounted to 3009 million Sm3 o.e. Of this, gas reserves constitute 60 per cent. Gross reserves, or the licensees’ estimates before production is deducted, increased by 113 million Sm3 o.e. Production in 2016 was 233 million Sm3 o.e. The change in the accounts shows an annual production of 232 million Sm3 o.e. The reason for this is that a fixed conversion factor is used when NGL is converted to Sm3. This resulted in a reduction in the reserves of 119 million Sm3 o.e., or about 4 per cent, in 2016.

 

Contingent resources

Contingent resources comprise proven oil and gas for which a production decision has not yet been made. Petroleum volumes in potential improved recovery projects are included in this category. At year-end, contingent resources amounted to 1542 million Sm3 o.e. Resources not considered commercial are not included in the accounts.

Every year, a portion of the contingent resources are approved for transferer to the reserves category. The growth in the contingent resources category comes from exploration activity.

In 2016, the exploration activity resulted in a resource growth estimated at 57 million Sm3 o.e. Thirty-six exploration wells were started, and 18 discoveries were made; two in the Barents Sea, two in the Norwegian Sea and 14 in the North Sea. Many of the discoveries have not been fully evaluated, and the estimates are therefore very uncertain.

Contingent resources in fields constitute 845 million Sm3 o.e. or 19 per cent of the remaining proven resources. In 2016, there was an increase of 35 million Sm3 o.e. compared to the accounts in 2015. The increase can be explained through maturing of projects on the fields and new improved recovery projects. Resources in discoveries were reduced by 42 million Sm3 o.e., to 697 million Sm3 o.e., as a result of the PDOs submitted for the discoveries 8/10-4 S Oda, 15/8-1 Utgard, 35/11-13 Byrding, 6406/3-2 Trestakk and 6507/7-14 S Dvalin. They are now classified as reserves. In addition, several of the discoveries in the accounts from last year were not found suitable for development. They are therefore not included in the accounts.

 

Unproven resources

Unproven resources comprises oil and gas that probably exists and can be produced, but have not yet been proven through drilling.

Resource estimates for unproven resources are updated every other year, so were not updated in 2016. Unproven resources were estimated at 2870 million Sm3 o.e. This is a reduction of 50 million Sm3 o.e. compared with the resource accounts for 2015 and almost matches the volume proven in new discoveries in 2016. Unproven resources constitute about 39 per cent of the total resources that remain on the Norwegian shelf. The estimate for unproven resources will be updated in 2017.

 

UNFC classification

The United Nations Framework Classification System 2009 (UNFC 2009) was made in order to compare resource estimates across various classification systems.

Since 2014, the NPD has also classified the Norwegian petroleum resources according to UNFC 2009.

The resources in each of the about 700 Norwegian projects that are included in the resource accounts are sorted along three axes; the E, F and G axis. These represent varying degrees of socioeconomic attractiveness, technical maturity and uncertainty.

The Norwegian resource accounts as of 31 Dec. 2016, converted to UNFC, can be summarised as shown in the table with the resource accounts under the “UNFC” tab.

An explanation of the method used to convert from the Norwegian system to UNFC 2009 can be found in this Publication from 2014 >>.

 

Resources per sea area

 

The North Sea contains about 51 per cent of the remaining resources. The distribution of the remaining resources is about equal between the Norwegian Sea and Barents Sea. A large portion of the expected resources that remain in the Barents Sea have not yet been proven.

The North Sea is the engine in the Norwegian petroleum activities, with 62 producing fields at year-end, while the Norwegian Sea has 16 fields in production. The Barents Sea has two fields after Goliat started producing in 2016. The North Sea also has the largest volume of remaining resources, with about 51 per cent.

 

Remaining petroleum resources distributed by sea area
at 31 December 2016

 

Remaining petroleum resources distributed by sea area at 31 December 2016

 



North Sea

The resource accounts for the North Sea show that 160 million Sm3 o.e. were sold and delivered from this part of the Norwegian shelf over the past year. At the same time, the growth in gross reserves, or the licensees’ estimates before production is deducted, amounted to 59 million Sm3 o.e. This means that the reserves remaining in the North Sea were reduced by 101 million Sm3 o.e. in 2016.

The increase in gross reserves can be explained by the submission of PDOs for 35/11-13 Byrding, 8/10-4 S Oda and 15/8-1 Utgard, and that reserves have increased on several fields.

Contingent resources on fields have increased by 42 million Sm3 o.e. in 2016 as result of maturing of projects on the fields and new projects for improved recovery. Contingent resources in discoveries have been reduced by 30 million Sm3 o.e. compared with last year’s accounts. The reason for this is that the resources in 35/11-13 Byrding, 8/10-4 S Oda and 15/8-1 Utgard have been transferred to the field portfolio. In addition, development of six discoveries in last year’s accounts was not considered commercial. They are classified in resource class 6. Fourteen new discoveries were made in the North Sea in 2016. Resource growth amounts to about 50 million Sm3 o.e.

The resource estimate for unproven resources was not updated in 2016. The expected volume is estimated at 700 million Sm3 o.e. This is a reduction of 45 million Sm3 o.e. in relation to last year’s accounts, and approximately corresponds to the volume proven in new discoveries in 2016.

 

 

Total petroleum resources in the North Sea
at 31 Dec 2016
  Oil
mill. Sm3
Gas
bill. Sm3
NGL
mill. tonn
Condensate
mill. Sm3
Sum
o.e.
mill. Sm3
Produced 3581.1
 1721.7 135.6
74.7
 5635.1
Reserves* 841.8
 1219.6 72.2
 -4.5 2194.0
Contingent resources in fields  311.8  129.7  11.8  0.0  463.9
Contingent resources in discoveries 138.7
120.9
 8.6  1.0  276.9
Undiscovered resources 430.0
 230.0    40.0  700.0
Total** 5303.3
 3421.8  228.2  111.2  9270.0
* Includes resource classes 1, 2 and 3
** Resources from RK 7A have not been broken down by area

 

North Sea - Changes from 2015
  Change Oil y-o-y
mill. Sm3
Change Gas y-o-y
bill. Sm3
Change NGL
y-o-y
mill. tonn
Change Condensate y-o-y
mill. Sm3
Change Sum o.e. y-o-y
mill. Sm3
Produced 76.6
 71.6 6.4
 0.0 160.3
Reserves* -32.0
-58.9
-3.1
 -3.9 -100.8
Contingent resources in fields 26.4
13.8
0.9
0.0
41.9
Contingent resources in discoveries -22.5
 0.2 -0.1
 -8.0 -30.5
Undiscovered resources  -25.0 -20.0
 0.0  0.0 -45.0
Total** 23.5
 6.6  4.1 -11.9
 26.0
* Includes resource classes 1, 2 and 3
** Resources from RK 7A have not been broken down by area

 

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Norwegian Sea

The resource accounts for the Norwegian Sea show that 61 million Sm3 o.e. were sold and delivered from this part of the Norwegian shelf over the past year. At the same time, gross reserves, or the licensees’ estimates before production is deducted, increased by 51 million Sm3 o.e. This entails a reduction in remaining reserves in the Norwegian Sea of 10 million Sm3 o.e. in 2016.

The increase in gross reserves is due, in part, to the submission of PDO for 6507/7-14 S Dvalin and 6406/3-2 Trestakk, and that they were transferred to reserves. The reserve estimates for several fields in the Norwegian Sea have also increased.

Contingent resources in fields increased by 2 million Sm3 o.e. in 2016. The estimate for contingent resources in discoveries was reduced by 30 million Sm3 o.e. compared to last year’s accounts. The most important reason for this is that the resources in 6507/7-14 S Dvalin and 6406/3-2 Trestakk have been transferred to reserves.

Two new discoveries were made near the Njord field in the Norwegian Sea in 2016. The discoveries are minor, and total resource growth is about 0.7 million Sm3 o.e. The estimate for unproven resources is 775 million Sm3 o.e. and this is the same as in 2015.

 

Total petroleum resources in the Norwegian Sea
at 31 Dec 2016
  Oil
mill. Sm3
Gas
bill. Sm3
NGL
mill. tonn
Condensate
mill. Sm3
Sum
o.e.
mill. Sm3
Produced 585.4
 454.1 52.0
34.1
 1172.4
Reserves* 121.2  380.2 34.0
 8.2 574.1
Contingent resources in fields  34.7  102.0  8.1 2.3  154.2
Contingent resources in discoveries 38.1
132.7
 5.1  1.6  182.1
Undiscovered resources 320.0
 410.0    45.0  775.0
Total** 1099.4
 1479.0  99.1 91.1  2857.9
* Includes resource classes 1, 2 and 3
** Resources from RK 7A have not been broken down by area

 

Norweian Sea - Changes from 2015
  Change Oil y-o-y
mill. Sm3
Change Gas y-o-y
bill. Sm3
Change NGL
y-o-y
mill. tonn
Change Condensate y-o-y
mill. Sm3
Change Sum o.e. y-o-y
mill. Sm3
Produced 14.4
 39.1 3.6
 1.0 61.4
Reserves* 0.4
-8.6
-1.0
 0.0 -10.1
Contingent resources in fields -3.3
10.3
-2.8
0.8
2.5
Contingent resources in discoveries -11.0
 -17.0 -0.3
 -1.6 -30.3
Undiscovered resources  0.0 0.0
 0.0  0.0 0.0
Total** 0.6
 23.7 -0.5 0.2
23.5
* Includes resource classes 1, 2 and 3
** Resources from RK 7A have not been broken down by area

 

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Barents Sea

The resource accounts for the Barents Sea show that 10 million Sm3 o.e. were sold and delivered from this part of the Norwegian shelf over the past year. At the same time, gross reserves, or the licensees’ estimates before production is deducted, increased by 2 million Sm3 o.e. This entails a reduction in remaining reserves in the Barents Sea of 8 million Sm3 o.e. in 2016.

Contingent resources in fields increased by one million Sm3 o.e. compared with last year’s accounts. The estimate for contingent resources in discoveries increased by 19 million Sm3 o.e. compared to last year’s accounts. The reason for this is that the resource estimate for 7324/8-1 Wisting increased by 18 million Sm3 o.e. following promising results from an appraisal well in 2016.

Two new discoveries were made in the Barents Sea in 2016. Resource growth is about 7 million Sm3 o.e. Development of one of the discoveries is not considered commercial and is therefore not included in the accounts.

The unproven resources in the Barents Sea include volumes in the southeastern Barents Sea and the area around Jan Mayen. The new area in the northeastern Barents Sea after the demarcation line agreement between Norway and Russia is not included. The estimate for the unproven resources is 1395 million Sm3 o.e. and was reduced by 5 million Sm3 o.e.  this year. This is about the same volume that was proven in new discoveries in 2016.

 

Total petroleum resources in the Barents Sea
at 31 Dec 2016
  Oil
mill. Sm3
Gas
bill. Sm3
NGL
mill. tonn
Condensate
mill. Sm3
Sum
o.e.
mill. Sm3
Produced 3.0
 41.3 2.1
6.8
 55.0
Reserves* 28.0  182.4 6.1
 19.0 241.0
Contingent resources in fields 4.0  14.7 1.2 0.4  21.4
Contingent resources in discoveries 190.6
45.9
 0.6 0.9  238.5
Undiscovered resources 535.0
 825.0   35.0  1395.0
Total** 760.6
 1109.3  10.0 62.1  1950.9
* Includes resource classes 1, 2 and 3
** Resources from RK 7A have not been broken down by area

 

Barents Sea - Changes from 2015
  Change Oil y-o-y
mill. Sm3
Change Gas y-o-y
bill. Sm3
Change NGL y-o-y
mill. tonn
Change Condensate y-o-y
mill. Sm3
Change Sum o.e. y-o-y
mill. Sm3
Produced 3.0
 6.1 0.3
 0.9 10.5
Reserves* -0.4
-6.7
0.2
 -1.5 -8.3
Contingent resources in fields -0.7
0.4
0.7
-0.3
0.7
Contingent resources in discoveries 25.8
 -6.6 0.0
 0.0 19.2
Undiscovered resources -5.0 0.0
 0.0  0.0 -5.0
Total** 22.6
 -6.7 1.1 -0.9
17.0
* Includes resource classes 1, 2 and 3
** Resources from RK 7A have not been broken down by area

 

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