NPD upbeat on Norway’s exploration potential
Undiscovered resources could provide a basis for oil and gas production offshore Norway for several more decades, according to the Norwegian Petroleum Directorate.
Nearly 3 bcmoe of oil and gas remain to be discovered on the shelf, NPD estimates. Almost half is in the Barents Sea, with the remainder split between theNorth Sea and Norwegian Sea.
However, exploration activity needs to continue at a high level for those undiscovered resources to enter production from around 2025 onward.
Between 2000 and 2014, total net cash flow generated from exploration offshore Norway was nearly NOK 2,000 billion ($242 billion) after cost deductions, with the majority - NOK 1,400 billion ($170 billion) – coming from the North Sea.
Last year 56exploration wells were spudded across the sector, but NPD only anticipates around 30 this year.
At the end of 2015, 53 companies were present on the shelf, double the number in 2000, and most are active in the exploration phase.
According to NPD, new players mean greater diversity in terms of testing new ideas or innovative concepts: this contributes toward a higher discovery rate.
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