Oil and gas activities, investments, Q1 2000

The decline from 1998 was mostly due to lower investments in field development. Investments in field development in 1999 came to NOK 35.1 billion, a decrease of NOK 10.0 billion from 1998. Only a few development projects have been initiated in recent years, which explains the decline from 1998 to 1999.

Investments in fields on stream in 1999 amounted to NOK 19.9 billion, the highest figure ever recorded and a NOK 7.5 billion increase from 1998. The increase from 1998 is mostly due to higher investments in existing fields, but the inclusion of the new fields like Åsgard, Visund, Oseberg East, Varg, Troll C and Balder also contributed.

Exploration investments totalled NOK 5.0 billion in 1999. This is NOK 2.6 billion lower than in 1998. We must go back to 1995 to find a similar low level in exploration activities. The extremely low oil price we had a year ago, probably explains the decrease in exploration investments.

Investments in onshore actvities and pipeline transport last year came to NOK 4.3 and 4.7 billion respectively, which resulted in a fall from 1998 of NOK 1.4 and 3.7 billion respectively. The decline in investments for pipeline transport is mainly due to lower investments in Europipe II and in the pipeline between Åsagrd and Kårstø in 1999 than in 1998.

Investments will cut back even further this year

Total investments in oil and gas extraction and pipeline transport in 2000 are now estimated at NOK 49.5 billion. This is NOK 12.6 billion lower than the corresponding estimate for 1999 given in the 1st quarter of 1999. The deacrease is mainly due to a fall in investments for field development.

Investments in field development for 2000 are now estimated at NOK 23.2 billion. This is a NOK 9.1 billion drop compared with the corresponding estimate for 1999, but a NOK 1.9 billion upward adjustment from the estimate for 2000 from the previous quarter. Estimates for the new projects Ringhorn and Grane are for the first time included in this survey.

Exploration investments for 2000 are now estimated at NOK 5.6 billion. This is an increase of NOK 0.4 billion from the corresponding estimate for 1999, but a NOK 1.5 billion downward adjustment from the last estimate for 2000 given in the 4th quarter of 1999. Drilling of 7 exploration wells have been removed from the companies` budgets since the previous quarter.

Investments in fields on stream in 2000 are now estimated at NOK 19.1 billion. This is an increase of NOK 2.3 billion from the corresponding estimate for 1999 and an upward adjustment of NOK 0.4 billion from the estimate for 2000 given in the 4th quarter of 1999.

Investments in onshore activities and pipeline transport for 2000 are now estimated at NOK 0.9 and 0.6 billion respectively. This is nearly unchanged from the last estimate conducted in the 4th quarter of 1999.