Norwegian oil output in June drops below NPD’s prediction

Norwegian oil production has dropped below predictions made by the Norwegian Petroleum Directorate (NPD) after being above the limit for two months in a row.

According to the directorate’s report on Friday, preliminary production figures for June 2020 show an average daily production of 1,857,000 barrels of oil, NGL, and condensate.

Average daily liquids production in June was: 1,543,000 barrels of oil, 298,000 barrels of NGL, and 17,000 barrels of condensate.

It is worth noting that, the Government decided to implement a cut in Norwegian oil production 29 April 2020. The production figures for oil in June include this cut of 250,000 barrels per day. 

The NPD said that its oil production forecasts have been updated in the Government’s proposed Revised National Budget for 2020.

The update was presented on 12 May and takes the authorities’ oil production regulation into account, as well as the delayed start-up of fields under development and oil production in the first quarter.

Oil production in June is 4.1 per cent under the limit set in connection with the production adjustment for June.

The total petroleum production for the first six months in 2020 is about 115.2 million Sm3 oil equivalents (MSm3 o.e.), broken down as follows: about 49.1 MSm3 o.e. of oil, about 9.4 MSm3 o.e. of NGL, and condensate and about 56.7 MSm3 o.e. of gas for sale.

The total volume is 5.7 MSm3 o.e. higher than in 2019.