Net cash flow from the Norwegian state’s direct financial interest (SDFI) in oil and gas operations on the Norwegian Continental Shelf reduced by NOK 2 billion ($234.73 million), to NOK 17 billion ($1.99 billion), year on year in the third quarter of 2015, according to Petoro.
The decrease was registered despite a production increase of almost 24 percent in 3Q 2015, compared to the same period last year, which translates to an average oil and gas output of 1.05 million barrels of oil equivalent per day. Investment for the first nine months was NOK 6 billion ($703.63 million) lower than in the same period of last year. This decline primarily reflected lower capital spending on developments and some reduction in operating investment.
Despite the latest statistics, Grethe Moen, CEO of Petoro, believes that the situation will improve. Commenting in a Petoro statement, Moen said:
“We in Petoro are now seeing the results of short-term measures which have had an immediate effect. Fundamental changes in the way the industry collaborates will call for a lengthy commitment. It’s positive that Statoil, as the leading operator, is now saying clearly that costs must be reduced to the level which prevailed in the industry during the early 2000s. That’ll boost the profitability of new projects and yield increased activity on the Norwegian continental shelf.”
Petoro is a state-owned limited company which manages the SDFI in the Norwegian oil and gas sector. These holdings comprise a third of Norway’s oil and gas reserves and associated facilities.
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