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NPD downgrades resources

June 25, 2003, 14:35 CEST

The Norwegian Petroleum Directorate has cut its estimate of total oil and gas on Norway’s continental shelf by seven per cent in a resource report presented today, 25 June.

Reducing the figure to 12.8 billion cubic metres of oil equivalent, this downgrading largely reflects a reduction in undiscovered gas resources thought to lie in the Norwegian Sea.

The NPD has also reduced its expectations for improved gas recovery from the NCS.

Statoil is currently working on its own assessment of Norway’s offshore resource potential, particularly in the Norwegian Sea, as part of its work with the current 18th licensing round.

“We agree with the NPD that estimates for areas of the NCS should be downgraded somewhat, particularly after a series of dry wells in recent years,” says Kent Høgseth, who heads deepwater exploration in the Norwegian Sea.

Statoil still has positive faith in the NCS, but the main challenge facing Norway’s offshore industry is to secure access to new quality exploration acreage.

“We continue to see a potential for making large discoveries in these waters, particularly the Norwegian and Barents Seas,” says Mr Høgseth.

The group places great emphasis on finding additional resources, but is also concerned to improve recovery from existing fields.

Read the NPD’s resource report for 2003 here.