NPD: Norwegian Production to Increase to 2023
Norwegian production will continue to increase to 2023, according to the Norwegian Petroleum Directorate (NPD).
Overall output rose for the fourth straight year in 2017, the NPD revealed, with 85 producing fields present on the Norwegian Shelf at year end, five of which came on stream last year.
“The high production forecasts are good news for everyone who is interested in value creation in Norway,” NPD Director General Bente Nyland said in an organization statement.
Nyland warned, however, that if production is to be maintained at a high level beyond 2025, more profitable resources must be proven, including in major discoveries.
“Therefore, the Norwegian Petroleum Directorate believes that exploration activity must be increased from today’s level, in both mature and frontier areas,” she added.
Last year 34 exploration wells were completed, three fewer than the previous year. Half of the wells were drilled in the Barents Sea, twelve in the North Sea and five in the Norwegian Sea. Eleven discoveries were made, compared with 18 in 2016.
All of the discoveries were relatively minor but several could become profitable developments if they are tied in to fields currently in operation, the NPD said.
Since 2014, the NPD noted that the industry has made significant efforts to cut costs.
“A wide range of measures have been implemented, both in the planning, execution and operations phases,” the NPD said in a statement on its website.
After several years of reduced investments, the decline is now levelling off, according to the NPD, which expects investments to be around $15 billion (NOK 122 billion) this year; about the same level as 2017. In 2019, investments are expected to rise to just under $17 billion (NOK 140 billion).
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