The petroleum resource account as of Dec. 31, 2005

The updated resource account shows that there is 8.8 billion Sm3 oil equivalents left to be produced. This is more than twice as much as has been produced so far.

The Norwegian Petroleum Directorate's (NPD's) resource account, which is now presented with updated figures as of December 31, 2005, is an overview of the 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.

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, 2005 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.

The estimate of the undiscovered resources is equal to that presented last year. The estimate is 1160 million Sm3 oil, 340 million Sm3 condensate and 1900 billion Sm3 gas, a total of 3400 million Sm3 o.e. which represents 39 % of the remaining resources.

The remaining total recoverable resources are estimated to be 8.8 billion Sm3 o.e. with an uncertainty range from 6.3 to 12.0 billion Sm3 o.e.
In 2005 148 million Sm3 oil, 85 billion Sm3 gas, 16 million Sm3 NGL, and 8 million Sm3 condensate, totally 257.2 million Sm3 o.e., were sold and delivered. This is 7 million Sm3 o.e. less than in 2004.

6 new discoveries were made in 2005. The expected volume of the new discoveries is estimated to 3 - 16 million Sm3 oil and 39 - 119 billion Sm3 gas. The evaluation of the size of the discoveries is however ongoing and the figures are therefore very uncertain. Compared to 2004, this gives an increase in resource growth.

As of December 31, 2005 eight fields were being developed; Alvheim, Blane, Enoch, Ormen Lange, Ringhorne Øst, Snøhvit, Vilje and Volve. Blane and Enoch are expected to start production during 2006.

Reserves remaining in fields have been increased with 23 million Sm3 o.e. compared with the last years account. 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.

155 million Sm3 oil have been reclassified from contingent resources to reserves. This is 19 percent of the authorities new goal of adding 5 billion barrels og oil to the reserve base before 2015. The oil reserve growth in 2005 is the highest in five years.

Contingent resources in fields (RK4-7) have been reduced with 24 million Sm3 o.e. Projects such as Statfjord Late Life, Ringhorne Øst, Smørbukk Sør Q phase 2 and Tune Sør have been approved and thus moved to the reserve category. There has also been a contribution to reserves from projects on Brage, Gungne, Gullfaks, Huldra and Ula - among others.

Contingent resources in discoveries (not yet approved for development) constitute 138 million Sm3 oil, 494 billion Sm3 gas, 30 million tons NGL, and 37 million Sm3 condensate, in total 727 million Sm3 o.e. This is a reduction of 20 million Sm3 o.e. compared with last years estimate. This reduction is due to the fact that the discoveries Blane, Volve, Oseberg Delta and Tyrihans, which all were in the planning phase, have had approved PDOs during 2005 and are now classified as reserves. 59 discoveries are not yet approved for development (resource categories 4F, 5F and 7F). 94 discoveries are reported under 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.

Contact within the NPD:
Marit Arnesen, telephone: +47 51 87 64 33