Oil production towards new heights

November 1, 2002, 00:00 CET

In recent months, Hydro has set several new records in oil and gas production. Hydro is on the way to become a 500,000 barrel oil company.

Last week the company produced 533,000 barrels of oil equivalents per day, 60,000 barrels of which were produced on fields outside of the Norwegian continental shelf.

Increasing oil production in the second half of the year has led to an upward adjustment of forecast annual production by 15,000 barrels per day to 470,000.

Hydro expects to maintain a production level of around 500,000 barrels oil equivalents per day in the fourth quarter. This is 40,000 barrels more per day than the average production level in the first three quarters of the year.

"The high production is a result of very great demand for gas from customers on the continent. In addition, the fields that were closed down for maintenance earlier this autumn are now in production again," says Kjetil Solbrække, Vice President Finance in Oil and Energy.

"We also notice a gain from the SDFI units we purchased in May, which increase our ownership in the Oseberg fields," he says.

Hydro’s present production record was set in the middle of July, when daily production was as high as 541,000 barrels.

Meanwhile Solbrække does not rule out the possibility that this record may be broken later this year. Important factors would include the demand for gas staying at the forecast level – around 140 barrels oil equivalents – and that the Tune field in North Sea comes onstream as planned.