Petoro: Press release, annual results for the SDFI in 2011
(Thomson Reuters ONE) -
Stavanger 28 February 2012
2011 Great year for Petoro and SDFI
Net cash flow to the government from the State's Direct Financial Interest
(SDFI) on the Norwegian continental shelf (NCS) was NOK 128.1 billion in 2011,
up 24 per cent from NOK 103.6 billion the year before. SDFI reserves rose by a
net 601 million barrels of oil equivalent (boe) from 2010, the biggest increase
since Ormen Lange in 2003. Combined with major discoveries, this can help to
maintain SDFI production at its present level of about one million boe per day
for the next decade.
"We not only celebrated our 10th anniversary in 2011, but this was also a year
to celebrate for the oil and gas portfolio we manage," says Petoro president
Kjell Pedersen in a comment.
"The most gratifying aspect is that we suffered no serious incidents or events
with a major accident potential in 2011. After a number of years with a very low
reserve replacement rate, it's encouraging to be able to add 601 million boe to
our holdings. That's almost equivalent to the Norne field, and represents a
replacement rate of 160 per cent. We were also involved in Johan Sverdrup, a
discovery on a par with the very biggest fields on the NCS, and in the
Skrugard/Havis finds, which confirm the Barents Sea as an oil province. That
makes 2011 one of our very best years, although we've earlier had much higher
net cash flows to the government."
Mr Pedersen notes that last year in many ways involved a breakthrough for the
kind of thinking about Norway's large mature fields which is reflected in
Petoro's strategy. He has found that Statoil, the dominant operator of such
fields on the NCS, is also expressing itself more clearly and aggressively in
its work with and comments on increased recovery and mature fields. The
government's petroleum White Paper also provided a strong and clear pointer in
that respect.
"We must nevertheless be careful not to think that we've cracked the code for
the mature fields, and that everything is running smoothly," he says. He points
out that roughly three-quarters of the increase in SDFI reserves in 2011
reflected the decision to invest in gas compression on Troll and Åsgard. "These
are also gratifying and sensible decisions, and will boost gas sales over time.
But they don't represent a breakthrough for the substantially bigger challenge
of increasing oil recovery from the mature fields. Less than 20 per cent of our
reserve addition in 2011 was attributable to the latter.
"Our figures unfortunately show that we're rather heading in the wrong direction
with regard to drilling production wells - one of the most important measures
for improved oil recovery. So our proposal to build wellhead platforms in order
to drill more wells faster is therefore just as relevant. If the reserves in the
mature fields are recovered and the new discoveries developed, we will for a
long time to come remain the biggest contributor through the SDFI to the
government pension fund - global, apart from after tax revenues from the NCS."
Net income for the SDFI was NOK 133.7 billion, up by 27 per cent from 2010. This
substantial rise reflected higher oil and gas prices, but that effect was offset
to some extent by lower production and higher costs. Further maturation of the
portfolio meant that oil production in 2011 fell by 6.5 per cent from the year
before. The reduction was nevertheless not as sharp as in many previous years,
and could indicate a flattening out of the decline in oil production. Gas output
fell by five per cent from 2010.
Revenue for the year from dry gas sales totalled NOK 81.7 billion as against NOK
68 billion in 2010. Total gas sold fell by five per cent from 2010 to 37.4
billion standard cubic metres (scm), including sales of third-party volumes.
That corresponds to 645 000 boe/d. The average gas price for the year was NOK
2.15 per scm, up 22 per cent from 2010.
Total revenue for the year from oil and natural gas liquids (NGL) was NOK 95.4
billion, compared with NOK 81 billion the year before. The sales volume totalled
160 million boe, or a daily average of 438 000 boe. The average oil price
obtained for the year was NOK 632 per barrel, up by 31 per cent from 2010. In US
dollars, the oil price averaged USD 114 per barrel, compared with USD 79 the
year before.
Net income for the SDFI in the fourth quarter was NOK 39.2 billion, up by 27 per
cent from the same period of 2010. Cash flow to the government was almost NOK
31 billion. Oil and gas prices obtained by the SDFI were up by 24 and 23 per
cent respectively from the fourth quarter of 2010.
Key figures
+---------------------------------------+-------------+---------------+
|(All amounts in NOK million) |Fourth |Full year |
| |quarter | |
| +------+------+-------+-------+
| | 2011| 2010| 2011| 2010|
+---------------------------------------+------+------+-------+-------+
|Operating revenue |53 633|46 149|188 820|159 270|
+---------------------------------------+------+------+-------+-------+
|Total operating expenses |14 364|14 726| 53 860| 52 045|
+---------------------------------------+------+------+-------+-------+
|Operating income |39 269|31 423|134 959|107 225|
+---------------------------------------+------+------+-------+-------+
|Net financial items | (96)| (524)|(1 239)|(1 846)|
+---------------------------------------+------+------+-------+-------+
|Income after financial items |39 174|30 899|133 721|105 379|
+---------------------------------------+------+------+-------+-------+
|Total investment | 3 288| 4 741| 19 053| 19 533|
+---------------------------------------+------+------+-------+-------+
|Net cash flow transferred to government|30 821|25 156|128 083|103 572|
+---------------------------------------+------+------+-------+-------+
|Average oil price (USD/bbl) |113.48| 86.35| 114.00| 79.38|
+---------------------------------------+------+------+-------+-------+
|NOK/USD exchange rate | 5.69| 6.01| 5.54| 6.07|
+---------------------------------------+------+------+-------+-------+
|Average oil price (NOK/bbl) | 646| 519| 632| 482|
+---------------------------------------+------+------+-------+-------+
|Oil/NGL production (1 000 b/d) | 463| 476| 440| 470|
+---------------------------------------+------+------+-------+-------+
|Average gas price (NOK/scm) | 2.33| 1.90| 2.15| 1.76|
+---------------------------------------+------+------+-------+-------+
|Gas production (mill scm/d) | 104| 111| 92| 97|
+---------------------------------------+------+------+-------+-------+
|Total production (1 000 boe/d) | 1 116| 1 175| 1 016| 1 080|
+---------------------------------------+------+------+-------+-------+
More information is provided in the directors' report atwww.petoro.no.
Contact:
------------------------------------------------------------------------
Sveinung Sletten Petoro AS
Kommunikasjonssjef / Head of communications Øvre Strandgate 124
Postboks 300 Sentrum
4002 Stavanger
Telefon +47 51502024 Telefon +47 51502000
Mobil +47 95075554 Telefaks +47 51502001
Sveinung.Sletten(at)petoro.no www.petoro.no
Annual results for the SDFI in 2011:
http://hugin.info/138333/R/1589501/499168.pdf
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Source: Petoro via Thomson Reuters ONE
[HUG#1589501]
Datum: 28.02.2012 - 10:01 Uhr
Sprache: Deutsch
News-ID 119235
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Town:
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