Norway Production Costs Rising

March 7, 2019

(Photo: Equinor)
(Photo: Equinor)

Petroleum production costs on the Norwegian continental shelf rose in 2018 after falling for three consecutive years, state-owned oil firm Petoro said on Thursday.

Cost cuts were high on oil firms' agenda following a sharp fall in crude prices in 2014, making it possible to develop discoveries that had previously been considered too expensive, including Equinor's Arctic Johan Castberg field.

Oil prices have partly recovered however, and cost inflation has thus returned.

"The positive trend of reduction in production costs have reversed and costs increased in 2018," Petoro, which manages the Norwegian government's stakes in offshore licenses, said in its annual report.

Adjusted production costs, including operating and maintenance costs, rose by 7 percent year-on-year, driven by higher power and carbon emission prices, as well as generally higher costs of operating fields, it added.

Petoro is not itself an operator, but is a partner in a large number of licenses, including fields operated by Norway's largest oil and gas firm Equinor. 


(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)



Current News

New Jersey to Create WIND Institute

New Jersey to Create WIND Institute

Empyrean Energy to Spud Well in Indonesia

Empyrean Energy to Spud Well in Indonesia

Ed LeBlanc Joins Ørsted

Ed LeBlanc Joins Ørsted

Rotterdam Port Rides High on Offshore Waves

Rotterdam Port Rides High on Offshore Waves

Power Outage Shuts Hibernia Production

Power Outage Shuts Hibernia Production

Saudi Aramco Asks Banks to Pitch for IPO Roles

Saudi Aramco Asks Banks to Pitch for IPO Roles

Seadrill Using AI to Monitor the 'Red Zone'

Seadrill Using AI to Monitor the 'Red Zone'

Subscribe for OE Digital E‑News

OE Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week