Page 125: of Offshore Engineer Magazine (Sep/Oct 2013)

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North Sea

Total E&P spending 2013 exploration and production (E&P) operational costs. In the short term, the spending for Norway and Denmark is main driver for increased spending is 60

Norway

US$46.3 billion and US$3.2 billion, the development of the Hejre feld.

Opex respectively.

With activity and investments picking 50 Exploration Capex

From 2010 to 2013, the total up in the North Sea, the foundation for

Capex

Norwegian E&P spending increased a new oil and gas supply has been set. 40 by about 20% annually. This growth

The second half of this decade could see was caused by both higher activity the decline production profles reversed, 30 and cost infation. As illustrated in the creating highly valuable resources. production graph, a large part of the

Billion US$ 20

Norwegian production in 2020 will

Espen Erlingsen is the come from not yet producing felds. lead Norwegian Conti-

This indicates that signifcant nental Shelf analyst at 10 investments are needed for new

Rystad Energy. His infrastructure. This is also refected expertise includes 0 2010 201120122013 2014 2015 2016 in the Norwegian spending chart, by company and acreage growth in the capex (capital spending) valuation, breakeven price analysis and 4 segment. In addition to new infrastruc- international petroleum fscal regimes.

Denmark ture, existing felds are expected to

He has an MSc in industrial economics 3 have high activity levels related to new from the Norwegian University of drilling campaigns, modifcations and

Science and Technology.

2 maintenance going forward. UCube is an online, complete, and

The Danish oil feld service mar- integrated feld-by-feld database,

Billion US$ 1 ket is considerably smaller than the including reserves, production profles,

Norwegian market, as illustrated fnancial fgures, ownership, and other in the spending graph. Over recent key parameters for all oil and gas 0 2010 201120122013 2014 2015 2016 years, total spending has increased, felds, discoveries, and exploration Source: UCube, Rystad Energy. due to both higher investments and licenses globally.

UK continental shelf. According to

Government policy the 2012 Reiten Commission, this is because of high operating costs in aids Norwegian success

Norway.

The Norwegian Petroleum to predictions that production will

Directorate predicts that a total 85 bil- orway’s offshore region remain at a steady rate for the next 30 lion boe will be produced, an increase covers 2.04 million sq km to 40 years. of 267 million boe from last year’s and is split into fve areas:

N

Drilling activity has seen a sharp rise the northern, southern and cen- estimate. This target can be reached since 2005. The Norwegian Petroleum if managers, project leaders, and engi-tral parts of the North Sea, the

Directorate says 40 exploration wells

Norwegian Sea and the Barents Sea. neers focus attention on increasing are spudded every year, and there have

Over the fve regions, there have overall production, and developing been three of the largest ever fnds in been 1400 exploration wells drilled new discoveries. the area since 2008. Although dis- since 1966.

There are 76 felds in production— covery rates are high, proven volumes

Kristin Færøvik is

CEO of Rosenberg

Ekofsk, in the southern part of the in these discoveries generally remain

WorleyParsons, and

North Sea, is the largest. In addition, small. served on the Reiten there are 16 felds currently being The recent success of the Norwegian

Commission. She developed. continental shelf is partially due to

Out of the fve regions, the changes in government policy on joined Bergen Group,

Norwegian Sea is the least mature exploration, including tax rebates. This bought by province: the Draugen feld was the has encouraged new entrants, with

WorleyParsons this year, after serving as managing director for Marathon frst on stream in 1993. the number of companies operating in

Oil in Norway. She previously held

There has been a decline in activity the basin having almost doubled to 50 outside the Norwegian Sea in recent since 1990. roles within BP. Færøvik holds degree in petroleum engineering from the years, but this has been made up for However, rig rates remain higher by recent discoveries in the northern in Norway than in other petroleum

Norwegian University of Science and

North Sea and Barents Sea, leading provinces, such as the neighboring

Technology.

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