Operating costs in Norway's oil and gas fields are falling and are expected to reach a recent low of an average 34 kroner ($4.40)/bbl oil equivalent (BOE) next year.
Wood Mackenzie Consultants Ltd., Edinburgh, said Norwegian operating costs peaked at 54 kroner ($7)/bbl oil equivalent in 1994 prices during 1986-87. Current operating costs are estimated at 35 kroner ($4.50)/bbl oil equivalent.
Total field operating outlays for Norway are predicted at 40 billion kroner (55.2 billion) this year, which represents about 46% of total oil and gas spending in Norway excluding exploration.
During 1994-99 Wood Mackenzie expects Norway's total operating costs to rise by 19% to 48 billion kroner ($6.2 billion)/year at 1994 prices.
Production during the same period is expected to peak in 1996 at 3.52 million BOE/day and remain stable, declining slowly to about 3,37 million BOE/day by 2000.
The analyst predicts Norway's producers will turn increasingly to lower cost fields, with a number of satellite developments due on stream over the next 5 years.
MARCH OIL PRODUCTION
Norwegian liquids production fell sightly to an average 2.89 million b/d from an average 2.92 million b/d in February said Wood Mackenzie.
Tanker exports of produced crude oil from Gullfaks, Statfjord, and Snorre fields were impeded during bad weather in mid-March but not enough to affect monthly output significantly.
Production from Ula field was curbed by a workover on the field's most productive well. East Sleipner field output was restrained for 2 weeks because of a problem with the platform's flare tip.
U.K. total liquids production averaged 2.43 million b/d in March, up from 2.38 million b/d in February. The rise came from offshore fields, with total production rising to 2.34 million b/d in March from 2.29 million b/d in February.
Wood Mackenzie said Nelson field oil production rose from 13,000 b/d in February to 51,000 bid in March. A plateau of 150,000 b/d is expected to be reached this year. Tiffany field output doubled to 40,000 b/d in March after commissioning problems, although gas compression problems are holding back first production from satellite field Toni. Other recent developments with rising output are Scott and Alba fields.
Danish liquids production rose to an average 193,000 b/d in March from 189,000 b/d in February. Dutch output rose to 61,000 b/d from an average 57,000 b/d in February.
GAS PRODUCTION
North Sea gas production fell in March largely because of falling seasonal demand. Norway produced an average 2.98 bcfd, down from 3.29 bcfd the month before. Exports to the U.K. averaged 450 MMcfd in March, about 5% of U.K. requirements.
U.K. offshore gas production averaged 8.26 bcfd in March, down from 10.2 bcfd in February. Overall U.K. gas demand was 11% higher than in March 1993.
Dutch offshore gas production slumped to 2.27 bcfd in March from an average 2.74 bcfd in February. Danish gas output fell to 567 MMcfd from 579 MMcfd, while Irish gas output dropped to 276 MMcfd from 303 MMcfd.
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