The Shelf in 2005

12.01.2006
Press release no. 2/2006:  2005 brought another record production of gas from the Norwegian continental shelf. Oil production was lower than expected. The exploration results were good in spite of few exploration wells, yielding discoveries in new areas as well as discoveries with new plays in mature areas. The Shelf in 2005 contains facts from the year that has passed and prospects for the coming five-year period.

Petroleum production
A total of 257 million marketable Sm3 oil equivalents were produced in i 2005.  This is 6 million Sm3 o.e. less than the record year, 2004.

Activity level
Investments made in 2005 are estimated at nearly NOK 83 billion (2005), excluding exploration costs.  This is NOK 16 billion more than the previous year. As regards 2006, investments excluding exploration costs are estimated at NOK 81 million.  In addition, we estimate that NOK 12 billion will be spent in connection with exploration.

New fields
Two new fields came on stream during the year, Kristin and Urd.  Another two fields are expected to start producing in 2006, Enoch and Blane.

Developments
During the course of 2005, 16 Plans for Development and Operation (PDOs) and Plans for Installation and Operation (PIOs) were approved.  An application for exemption from the PDO requirement was also approved for Tune. The authorities expect to receive approximately 10 PDOs for development of discoveries in 2006. 

New players
A total of nine new companies were pre-qualified during 2005 as licensees or operators on the Norwegian shelf.  At year-end, another ten companies were under consideration.

Award of area
During 2005, the companies on the Norwegian shelf were offered 45 new production licences.  These were awards in predefined areas (APA).  Also, in the autumn of 2005 the application deadline for production licences offered in the 19th licensing round expired.

Exploration activities
Twelve exploration wells were spudded in 2005, of which nine are wildcat wells and three are appraisal wells.  Six new discoveries were made, three in the North Sea and three in the Norwegian Sea.

Resource accounts
There has been no significant change in the total estimate of petroleum resources on the Norwegian continental shelf as of 31 December 2005.  However, there has been a substantial maturing of the resources on the shelf.

External environment
During 2005 the NPD contributed to a series of different projects concerning external environment.

eOperations
eOperations means implementing new forms of operation.  These new forms are based on ICT solutions including use of (near) real-time data to integrate work processes between disciplines, offshore, land and different organizations.  The purpose of this is to achieve faster, better decisions.

Contact in the NPD:
Eldbjørg Vaage Melberg, tel. +47 51 87 61 00