Oil and gas activities, investments, Q4 2004

The decrease in the estimate for 2004 is partly due to delays in exploration drilling.

Estimates for 2004

Total investments in oil and gas extraction and pipeline transport for 2004 are now estimated at NOK 71.9 billion. This is NOK 2.0 billion lower than the estimate conducted in the survey last quarter, but an increase of NOK 6.0 compared with the corresponding estimate given for 2003. The increase for 2004 is due to higher investments in onshore activity and pipeline transportation, while the estimates indicate a decrease in field development.

Exploration activities in 2004 are estimated at NOK 4.0 billion. Compared with the estimate given in the previous quarter, the estimate is 0.5 billion lower.

Investments in field development and fields on stream are now estimated at NOK 44.9 billion. This is a NOK 3.3 billion decrease compared with estimates given in the previous quarter.

Onshore activity and pipeline transportation are estimated at NOK 16.3 and 6.7 billion respectively.

Estimates for 2005

Total investments in oil and gas activities for 2005, including pipeline transportation, are estimated at NOK 89.5 billion. This is the highest estimate given, measured in current prices, since Statistics Norway started collecting estimates in 1985. The estimate is NOK 26.3 billion higher than the corresponding estimate for 2004, given in the fourth quarter of 2003. The increase in 2005 is mainly due to investments in projects related to Ormen Lange.

Investments for exploration activity in 2005 are estimated at NOK 9.0 billion. This indicates a strong increase compared with the level of exploration activity in the years 2002-2004. The final investment for exploration in 2002 and 2003 came to NOK 4.5 and 4.1 billion respectively, while the estimate for 2004 now is only at NOK 4.0 billion. In addition to delayed exploration drilling in 2004, high oil prices and the reopening of Barents Sea may explain the high estimate for 2005.

Investments for field development and fields on stream are now estimated at NOK 53.4 billion.

Onshore activities and pipeline transportation are estimated at NOK 16.5 and 10.5 billion respectively.

Tables:

• Table 1 Accrued and estimated investment costs. Extraction of crude petroleum and natural gas and transport via pipelines. 2000-2005. NOK million
• Table 2 Accrued investment costs for oil and gas exploration, by cost category. Q3 2002-Q3 2004. NOK million
• Table 3 Accrued investment costs for field development and fields on stream. Q3 2002-Q3 2004. NOK million
• Table 4 Estimated and accrued investment costs for oil and gas extraction and pipeline transport. 1985-2005