Oil&Gas: State Offshore Activity Valued At NOK 800 Billion

The direct state involvement on the Norwegian Continental Shelf (NCS) has been estimated at NOK 834. 8 billion (Euro 100 bill) as of January 1st 2008, an increase by NOK 42.4 bill (Euro 5.2 bill) since 2006.

This is the result of a valuation of the State’s Direct Financial Interest (SDFI) portfolio undertaken by Wood Mackenzie on behalf of the Ministry of Petroleum and Energy.

- This report illustrates the enormous values that the SDFI portfolio represents to the Norwegian State. Together with the tax revenues from the petroleum sector, the annual cash flows from the SDFI are important to Norway’s economy and constitute a major contribution to the Government Pension Fund-Global, says Minister for Petroleum and Energy Terje Riis-Johansen.

- The valuation shows that since the start of 2006, the value of the SDFI portfolio has increased by NKr 42.4 billion. The increase is mainly due to high oil and gas prices. At the same time, the Norwegian Continental Shelf has been characterised by increasing costs. This development illustrates how important it is to continue our commitment to reduce costs, increase oil recovery and ensure the future value-creation from the Norwegian Continental Shelf, says Minister Terje Riis-Johansen.