NPD Reports More Finds, Record Fields Online in 2019
The Norwegian Petroleum Directorate (NPD) has presented a summary of offshore activity in 2019, reporting an increase in discoveries and a record number of fields in production.
“We have a good foundation for continued high value creation from the oil and gas industry for a long time to come,” the NPD’s general director Ingrid Solvberg said in a presentation.
Some 57 exploration wells were drilled during the year, according to Solvberg, up from 53 in 2018. They resulted in 17 new oil and gas discoveries, including 10 in the North Sea, six in the Norwegian Sea and one in the Barents Sea. In contrast only 11 new finds were made the year before.
Several of the discoveries were relatively small, Solvberg said, although minor fields can be viable when located near existing infrastructure. She noted that 80mn m3 of oil equivalent (around 503mn barrels) had been found on average each year since 2011 – equal to around a third of annual production on the shelf.
“The last two years have seen a marked increase in proven volumes compared with the three previous years,” she said. “This shows that there is a connection between the number of exploration wells drilled and discoveries made.”
Norway had 87 fields on stream at the end of December, the director continued, marking a new record. Output in 2024 will be near the peak of 264mn m3 (4.55mn b/day) achieved in 2004, she predicted. Growth will be driven by further increases at the Sverdrup oil project and the start-up of the Johan Castberg field in 2022, among other factors.
While gas accounted for less than 35% of production in 2004, its share should rise to around half by 2024, according to Solvberg.
Norwegian output disappointed last year, lagging behind forecasts as a result of unscheduled maintenance at key fields. The NPD is yet to publish full-year statistics, but production was down 7% yr/yr in January to November at 195mn m3 (3.67mn b/day).