The Shelf in 2005 - Petroleum production
12/01/2006 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.
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.
Total production of petroleum in 2006 is expected to be 250 million Sm3 o.e. Production is expected to peak in 2008. During the five-year period up to 2010, we expect production of 1,380 million Sm3 oil equivalents (o.e.), which is about 100 million Sm3 o.e. more than in the five-year period from 2001 - 2005.
Sale of gas is what contributes to the increase. 2005 was a record-breaking year for gas marketing from the Shelf. 84.4 billion Sm3 gas was sold in 2005, an increase of 5.9 billion compared with 2004 (+ 8%). In the years to come, we also expect production of saleable gas to increase.
Production of oil was lower last year compared with previous years. 148.4 million Sm3 was produced and sold in 2005 compared with 162.8 million the previous year. Oil production in 2005 was 7.5 percent lower than the estimate prepared by the NPD in the autumn of 2004. The NPD prepares forecasts with an 80 percent confidence interval. This means that there is a 10 percent likelihood that production will be lower than the low estimate, and a 10 percent likelihood that production will be higher than the high estimate. The annual production of oil in 2005 was below the low estimate. This deviation is largely the result of the lost production on Snorre, delayed start-up of Kristin, as well as delayed drilling plans on a number of fields.
For 2006, the Norwegian Petroleum Directorate estimates that oil production will be somewhat lower than in 2005, 141 million Sm3 (2.4 million bbls per day). The uncertainty for 2006 is estimated at +/- seven percent. This uncertainty is linked particularly to the reservoirs' ability to deliver, timing for start-up of new projects and regularity of fields in operation.
Stabile production in expected in the period 2006 - 2010. It is estimated that a total of 735 million Sm3 oil will be produced, which is 100 million Sm3 less than in the previous five-year period. More than 97 percent is expected to come from fields in operation or fields approved for development. This includes measures to increase recovery on these same fields.
For 2006, forecasts also estimate production of 6 million Sm3 condensate and 9 million tonnes of NGL.
Contact in the NPD:
Eldbjørg Vaage Melberg, tel. +47 51 87 61 00