NPD: Norway’s Recoverable Resources Increased

The Norwegian Petroleum Directorate’s (NPD’s) resource account shows that the total recoverable petroleum resources are estimated at 13.6 billion standard cubic meters of oil equivalents (scm o.e.).

New areas for southeastern Barents Sea and Jan Mayen are not included in the petroleum resource account with updated figures as of 31.12.2012.

The main trends in the resource account for 2012 are:

• A net increase in reserves, replacement rate 152 percent
• Maturation of resources in fields and discoveries
• Nice resource growth from the exploration activity
• A full revision of the total undiscovered resources

The total recoverable resources have increased by 445 million scm o.e since 2011. This is mainly due to an increase in field reserves, increased resource estimates for discoveries, resource growth from new discoveries and an increase of the volume of the undiscovered resources.

Growth in reserves was 344 million scm o.e in 2012. This is because resources in discoveries have been approved for development by either the government or by the licensees and there has been an increase in reserves for fields in production. Ekofisk, Troll and Gullfaks Sør have had the largest increase in oil reserves. Ormen Lange had the largest increase in gas reserves, but several of the other fields in the Norwegian Sea have had an increase in gas reserves. In 2012 it was sold and delivered 226 million scm o.e. so that the net reserves rose by 118 million scm o.e.

Atla, Gaupe, Islay, Marulk, Visund Sør and Oselvar started production in 2012. At year end 14 fields are under development and the licensees have delivered Plans for Development and Operation (PDOs) for 15/5-1 Dagny, 16/1-9 Ivar Aasen and 6707/10-1 Aasta Hansteen. In 2013 Skarv and Hyme have already started to produce, while Brynhild, Jette, Skuld and Svalin intend to start production later this year.

In 2005 the NPD set a target of 800 million scm of additional gross oil reserves by 2015. The past year the growth in gross oil reserves was 155 million scm, by comparison it was sold 89 million scm of oil in 2012. 83 million scm of the reserve growth was recorded from discoveries decided to be developed and 72 mill scm was recorded from fields. Seven years into the period, the accumulated reserve growth is 607 million scm. This represents 76 percent of the government policy of reserve growth, and shows that it is possible to achieve the goal of 800 million scm, by 2015 if the right decisions are taken the next two years.

It is reported 754 million scm o.e. contingent resources in fields, and future plans for increased oil and gas recovery are also included in this figure. This is a reduction of 9 million scm o.e. compared with last year’s account and is due to the fact that projects at the fields have been approved and the petroleum volumes is matured to the reserves. In addition other projects are reduced in size and volume.

The amount of contingent resources in discoveries are reduced by 25 million scm .o.e. compared to last year’s account. The reason is that a considerable number of PDOs have been submitted in 2012 and this has resulted in resources maturing to reserves for the discoveries 15/5-1 Dagny, 16/1-8 Edvard Grieg, 16/1-9 Ivar Aasen, 24/9-9S Bøyla, 25/11-16 Svalin, 30/7-6 Martin Linge and 6707/10-1 Aasta Hansteen.

During 2012 the NPD has revised its resource estimates and quantified the total undiscovered resources at 2590 million scm o.e, this is an increase of 135 mill scm o.e since 2011. This volume does not include resource figures relating to new areas for southeastern Barents Sea and Jan Mayen. The estimate for 2011 was not based on a new evaluation, but it was an adjustment of the figures corresponding to the volume proven in new discoveries after the 2010 analysis of the undiscovered resources was conducted. Compared with the evaluation from 2010 we believe that there are larger undiscovered deposits of oil and less gas on the Norwegian shelf than previously estimated. The undiscovered oil resources in the North Sea and the Barents Sea are estimated to be higher than previous estimates, while the undiscovered gas resources in the North Sea and the Barents Sea have decreased. The estimates for the Norwegian Sea have not changed appreciably.

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March 1, 2013