Oil and gas activities, investments, Q3 2001

Estimates 2001

The total investments in oil and gas extraction and pipeline transportation for 2001 are now estimated at NOK 56.0 billion. This is an upward adjustment of NOK 3.0 billion from estimates given in the 2nd quarter. The new estimates are NOK 2.4 billion higher than the final 2000 figures.

Investments in exploration activity for 2001 are now estimated at NOK 6.6 billion. This is the highest level of exploration investments since 1998, and the estimates are upward adjusted by NOK 0.6 billion compared with the previous quarter. The final investment figures for the 2nd quarter are NOK 1.7 billion.

Investments for field development have a clear declining tendency, even though the estimates for 2001 were increased by NOK 2.1 billion to NOK 20.5 billion. This is, however, still NOK 2.3 billion below the final 2000 figures.

Investments for fields on stream have been upward adjusted compared with the 2nd quarter. The estimates for investment for fields on stream are now NOK 26.4 billion. This represents an adjustment of NOK 0.1 billion. There seems to be a connection between the decrease in investments for field development and the increase in investments for fields on stream. What happens is that new fields to a larger extent are built in connection with an existing installation in order to reduce investments for infrastructure. This gives lower investments for field development and higher investments for fields on stream.

Estimates 2002

The total investments for 2002 are now estimated at NOK 38.0 billion. This is NOK 9.6 billion more than the estimate given in the 2nd quarter. It is, however, important to realise that the estimates collected in the 2nd quarter are the first estimates for the year. From experience we see that these estimates are relatively uncertain. Compared with the estimates for 2001 given in the 3rd quarter 2000, the estimates for 2002 represent an increase of NOK 0,4 billion.

Investments for exploration activity are reported to be NOK 7.7 billion. This is at the same level as in the peak years, 1997 and 1998. This represents a growth of 18.2 per cent from 2001 to 2002, and if we compare the 2002 estimates to the final figures from 2000, the increased investments represent 46.9 per cent. New exploration licenses - along with a high price of oil - may be factors that contribute to the growth in investments.

Concerning investments for field development, these are estimated at NOK13.2 billion. This is a NOK 2.0 billion decrease compared with figures for 2001 collected in the 3rd quarter 2000. Investments for fields on stream are estimated to be NOK 15.8 billion. This is an increase of NOK 0.3 billion compared to the estimates for 2001 reported in 3rd quarter 2000. It is possible that these investments will increase when the PDO (Plan for Development and Operation) is approved for Mikkel, Kristin, Sygin and Valhall Flanke.

Tables:

• Table 1 Accrued and estimated investment costs. Extraction of crude petroleum and natural gas and transport via pipelines. 1997-2002. Million NOK (Corrected 7 September 2001 at 09:45 a.m.)
• Table 2 Accrued investment costs for oil and gas exploration, by cost category. Q2 1999-Q2 2001. Million NOK
• Table 3 Accrued investment costs for field development and fields on stream. Q2 1999-Q2 2001. Million NOK
• Table 4 Estimated and accrued investment costs for oil and gas extraction and pipeline transport. 1985-2002