The updated resource account shows that there is 8.9 billion Sm3 oil equivalents left to be produced. This in 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, 2004, 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, 2004 are estimated to 12.9 billion Sm3 oil equivalents (Sm3 o.e.). This figure is 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 38 % of the remaining resources.
The remaining total recoverable resources are estimated to be 8.9 billion Sm3 o.e. with an uncertainty range from 6.5 to 12.2 billion Sm3 o.e.
In 2004 163 million Sm3 oil, 78 billion Sm3 gas, 14 million Sm3 NGL, and 9 million Sm3 condensate, totally 264 million Sm3 o.e., were sold and delivered. This is the largest total production from the Norwegian Continental Shelf since the production started in 1971.
4 new discoveries were made in 2004. The expected volume of the new discoveries is approximately 20 million Sm3 o.e. The evaluation of the size of the discoveries is however ongoing and the figure is therefore very uncertain. The volume discovered in 2004 is less than 8 percent of the produced volume during the same year.
As of December 31, 2004 five fields were being developed; Kristin, Snøhvit, Ormen Lange, Alvheim and Urd. Kristin and Urd are expected to start production during 2005. The Frigg field was shut down in 2004 after 27 years of production.
Reserves remaining in fields have been reduced with 113 million Sm3 o.e. compared with the last years account. Approval of development plans for Alvheim, Urd, Vilje and Skinnfaks/Rimfaks IOR added 54 million Sm3 o.e to the reserves. In addition to this, several projects for increased recovery from producing fields were approved. These projects added 98 million Sm3 o.e. to the reserves. The total reserve increase, based on approved projects within the licenses, was 151 million Sm3 o.e. At the same time 264 million Sm3 o.e. were produced leading to a net reduction of reserves of 113 million Sm3 o.e. in 2004.
Contingent resources in fields (RK4-7) have been reduced with 134 million Sm3 o.e. Contingent resources in the planning phase (RK4) have increased with 34 million Sm3 o.e. The increase is mainly connected to projects for improved recovery on several fields including Ekofisk, Gullfaks and Åsgard in addition to well work at Gungne. The potential for future measures to improve the recovery factor (RK7A) has been reduced with 175 million Sm3 oil. This reduction is due to the fact that several concrete projects for improved recovery have been identified and are now in the planning phase.
Contingent resources discoveries (not yet approved for development) constitute 179 million Sm3 oil, 483 billion Sm3 gas, 21 million tons NGL, and 44 million Sm3 condensate, in total 746 million Sm3 o.e. This is a reduction of 17 million Sm3 o.e. compared with last years estimate. 62 discoveries are not yet approved for development (resource categories 4F, 5F and 7F). 90 discoveries are reported under other fields or discoveries.
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