Oil and gas activities, investments, Q1 2006

Estimates for investment in field development and exploration have the largest increase compared with the corresponding estimates for 2005, while the estimates for onshore activities and pipeline transport decreased.

Final investments in 2005

From 2004 to 2005 there was an increase in investments in all areas. A particularly large increase was seen for exploration, field development and pipeline transport. Total investments increased by NOK 1.3 billion, to NOK 88.5 billion in 2005.

The final investments for exploration activity in 2005 increased by NOK 3.5 billion and totalled NOK 7.5 billion. Investment in field development increased correspondingly by NOK 5.8 billion to NOK 19.5 billion. The final investments for fields on stream in 2005 were NOK 34.4 billion, an increase of NOK 3.2 billion.

For onshore activity, investments amounted to NOK 17 billion in 2005, up NOK 0.7 billion from 2004. The high investments are mainly due to the terminal projects at Aukra and Melkøya.

Estimates for 2006

The total investments for 2006 are now estimated at NOK 92.7 billion. This is an increase of NOK 4.2 billion compared with the corresponding estimate given in 2005, for the first quarter in 2005. Compared with the estimate given last quarter, this has almost remained the same, with just a minor decrease of NOK 0.2 billion.

The increase is mainly from field development and exploration, which are estimated at NOK 23.5 billion and NOK 12.0 billion respectively. Total investments in field development and fields on stream are estimated to be NOK 60.7 billion in 2006.

Since the previous quarter, the figures also include a first estimate for the development of Tyrihans. Ormen Lange, Statfjord late life and Alvheim have the largest estimates for investments in field development in 2006. Among the fields on stream, the largest investments are for Echoism, Troll and Heidrun.

Investment in onshore activities and pipeline transportation in 2006 are estimated at NOK 14.8 and 5.1 billion respectively, which is a decrease from the corresponding estimate for 2005 of NOK 1.6 and 5.4 billion respectively.

Tables:

• Table 1 Accrued and estimated investment costs. Extraction of crude petroleum and natural gas and transport via pipelines. 2001-2006. NOK million
• Table 2 Accrued investment costs for oil and gas exploration, by cost category. 4th quarter 2003-4th quarter 2005. NOK million
• Table 3 Accrued investment costs for field development and fields on stream. 4th quarter 2003-4th quarter 2005. NOK million
• Table 4 Estimated and accrued investment costs for oil and gas extraction and pipeline transport. 1985-2006