Lower expectations towards Barents Sea oil and gas
The Norwegian Petroleum Directorate today published a resource report where the resource estimate for the Barents Sea has been reduced from 1030 million cubic meters oil equivalents to 910 million cubic meters oil equivalents.
Estimated volumes of oil and gas in the Barents Sea have increased somewhat, but the recognition of poorer reservoir properties than expected, distance to the market and costs associated with development solutions have reduced expectations for the percentage of these resources that can be produced, the report reads.
The Norwegian Petroleum Directorate’s (NPD) resource report is issued every other year. The Resource Report 2009 provides an up-to-date overview of the resources and activities on the Norwegian continental shelf, and highlights important challenges for the Norwegian petroleum activities.
The reports states that exploration activity has reached record-breaking levels in the last couple of years, which has led to many, but small, discoveries. The NPD believes that large discoveries can still be made in areas of the shelf that have not been extensively explored. Much of Norway’s oil and gas production comes from discoveries made in the first 20 years, during the period between 1969 and 1989. Resource growth from discoveries made in the last decade is low, and provides only a small contribution to future production.
