We must continue to explore NORWEGIAN SHELF A JOURNAL FROM THE NORWEGIAN PETROLEUM DIRECTORATE NO 2 - 2018 2-2018 NORWEGIAN CONTINENTAL SHELF | 1 Gas, of course Rockshot. The Aasta Hansteen gas field began production Sulphide deposits have on 16 December as the first development in the been found on the northern Norwegian Sea. At the same time, the new Polarled pipeline began carrying natural gas PAGE NCS. These minerals to Nyhamna near Ålesund for export to European are important for your customers. All this opens new opportunities in Photo: Jan Stenløkk 9 mobile phone. the area around Aasta Hansteen and Polarled. In recent years, Norway has exported some 120 billion standard cubic metres of gas worth about NOK 200 billion. Most energy forecasts show a growth in demand for gas, while declin- ing domestic production in the EU could create Climate risk. an increased need for European gas imports. Professor Petter Were gas to replace coal in electricity generation, Osmundsen, a special- CO2 emissions could be halved. ist on petroleum eco- In my view, this is not well communicated in nomics, assesses the Norway. PAGE Norwegian oil and gas The NCS has produced more gas than oil since 2010, and that position is expected to per- industry’s exposure to sist. 10 climate risk. Substantial resources, closeness to the PAGES market and an integrated and flexible transport system with low unit costs have made Norwegian gas competitive in the European market. Photo: Monica Larsen 22-23 Lucky land. If the country is to maintain its gas exports Norwegian TV series from the mid-2020s, however, offshore explora- Banking samples. The NPD’s rock store has been redesignated the Geobank Lykkeland (State of tion activities must be stepped up and more because, as well as cores, it contains microfossils and frozen oil samples from virtually every Happiness) has reminded resources found in coming years. discovery and field on the NCS. the country’s residents of Almost two-thirds of Norway’s undiscovered the courageous decisions gas resources are expected to lie in the Barents Sea, which underlines the importance of this area PAGE taken in Stavanger ahead for long-term gas exports from the NCS. of the oil adventure. The key lies in the Barents Sea, and it is Photo: NRK 14 important that the companies explore for gas so that resources are found which can lay the basis for new infrastructure. We are working with Gassco to identify requirements which will allow fields, discoveries PAGE Go for gas. and resources yet to be found to form the basis PAGE for more export capacity from these northern Norway’s position as a waters. Photo: Monica Larsen Photo: Monica Larsen 18 gas exporter could be After two years with few exploration wells, 4 weakened unless the “We must con- their number is fortunately back at more than 50 The interview. Carbon chaser. NPD geologist companies adopt a more per year. We hope this is a sign that such drilling tinue to explore. And we must have Eva Halland is investigating opportunities PAGE aggressive approach has returned a new and better track – for gas as acreage to explore in,” says Kristin for storing huge quantities of CO2 deep to exploring for this well. Færøvik, chair of the board of the beneath the seabed on the NCS. Photo: Rune Solheim resource. Norwegian Oil and Gas Association. 24 RESPONSIBLE PUBLISHER PRODUCTION NORWEGIAN CONTINENTAL Norwegian Petroleum Directorate Printer: Kai Hansen SHELF P O Box 600 Paper: Arctic Volume 200/130 g www.npd.no/en/Publications Award winners. NO-4003 Stavanger Print run Norwegian: 10 000 The three companies Norway Print run English: 1 500 FOLLOW US ON TWITTER which shared the NPD’s Telephone: +47 51 87 60 00 www.twitter/oljedir E-mail: [email protected] LAYOUT 2018 IOR prize for their NORWEGIAN Arne Bjørøen COVER PHOTO work on the Alvheim field CONTINENTAL SHELF EDITORIAL TEAM Photo: Lefty Kasdaglis Bjørn Rasen, editor SUBSCRIPTIONS PAGE give the background for A JOURNAL FROM THE NORWEGIAN Bente Bergøy www.npd.no.magazine their ideas and mode of PETROLEUM DIRECTORATE Eldbjørg Vaage Melberg Free of charge Illustration: Aker BP collaboration. Bente Nyland Rolf E Gooderham, English editor 26 NO 2 - 2018 director general VOLUME 15 2 | NORWEGIAN CONTINENTAL SHELF 2-2018 2-2018 NORWEGIAN CONTINENTAL SHELF | 3 Talking the business up Being part of the Norwegian oil and gas industry is a source of great pride to Kristin Færøvik. “I’m proud of what this industry achieves every single day, and of the continuous contribution we make to Norwegian prosperity,” affirms the chair of the Norwegian Oil and Gas Association. “Quite a few people – who’re famil- iar with economics and know bet- ter – fail to mention this when they deliver a speech. That probably reflects Norway’s negatively charged public Popular backing. Norwegian Oil and Gas and Færøvik have noted debate on oil and climate.” that three out of every four people in Norway consider it is important to retain the petroleum industry. | Bjørn Rasen and Monica Larsen (photos) 4 | NORWEGIAN CONTINENTAL SHELF 2-2018 2-2018 NORWEGIAN CONTINENTAL SHELF | 5 uch sins of omission by Norwegian Oil and Gas constantly oil and gas sector, Færøvik maintains. important opinion-formers measures popular support for the “We’re very ‘competitive’ globally on have left Færøvik almost industry, and finds it good and broad- emissions and the way we operate.” speechless more than once, based – three out of four Norwegians She points to comments by other We’re dependent on predictability and stability. I particularly when she consid- say retaining the sector is important. experts that it makes no sense for the Sers who was on the rostrum. But Færøvik accepts that this back- NCS to shuts down first, either from a don’t hear any signals that the operating parameters And striking somebody from ing varies with age and geographical national, economic standpoint or in a Bergen dumb is a serious business. At location, and that it is particularly global energy and climate perspective. on the NCS ought to be revised. the end of our interview, the conversa- important for the industry to establish tion returns to the topic we started a good dialogue with young people. with – the industry’s reputation. Parameters Our discussion takes place where Asked whether existing operating Færøvik spends most of her time as Advanced parameters promote continued activ- Many of the discoveries in the more demanding. After all, the easiest “We have no intention of dropping CEO of Lundin Norway – its impressive “The question we ask ourselves in the ity, the industry’s foremost representa- Norwegian North Sea over the past discoveries have been made. that work and the report’s recommen- premises at Lysaker just outside Oslo. industry is how we should operate with tive takes a brief moment to consider decade were made in acreage which “So we’re very dependent on dation, even if the actual work is being Her office has an excellent view, but oil and gas in Norway,” she says. “We’re the question before responding. had been awarded and then relin- technological progress,” she says. And done at the companies.” she is primarily concerned with the a very advanced industry. “We’re dependent on predictabil- quished, she points out. that is being made – in such areas as She has received no signals about outlook for the industry. “That’s because we’ve had farsight- ity and stability. I don’t hear any signals “Production licence no 1 is an seismic surveying, for example. changes in behaviour so far. But some that the operating parameters on the excellent example,” Færøvik adds with New solutions are providing much might perhaps need to be considered NCS ought to be revised.” a broad smile. This was the recycled better images of the sub-surface than now that times have improved. Big share. Færøvik In her view, stable parameters have area where Lundin made its major before, supplemented by innovative “Parts of the supplies industry points out that explo- been and are a competitive advantage Johan Sverdrup discovery. data acquisition methods. may have entered into contracts which ration activity has for the Norwegian industry. Her attention then turns to the aren’t sustainable in the long term,” increased following the Nor are any amendments needed Barents Sea, where a huge area is avail- she concedes. “Adjustments could be entry of new players – to boost activity on mature fields, she able to explore and where the industry Lessons made there.” who account for a large says. “Not right now. Stability is the has only just got going. A different and depressing picture is That is simply because suppli- proportion of discover- most important consideration.” She observes that relatively few ers must have enough of a margin to ies in recent years. provided by cost and oil price curves She also says this out of consid- wells have been drilled in the far north for the past five-six years. Can Færøvik, make a living. Færøvik nevertheless eration for the new players who have compared with the numbers in the as the industry’s top representative, emphasises that they themselves must entered and will continue to enter the North Sea. And she is convinced that promise that her member companies deal with overinvestment in capacity – NCS. They have to know what they are more can be found there. have learnt the lessons from the pain- supply must be tailored to tomorrow’s coming to, without sudden negative “We base that view not only on ful downturn they have been through? realities and needs.