Page 18 - EurOil Week 39

EurOil PERFORMANCE EurOil

Norwegian oil output dips

slightly in August

NORWAY NORWEGIAN oil production averaged and an active licensing policy are two of the main
1.722mn barrels per day (bpd) in August, pillars in the government’s petroleum strategy,”
Norway has also the Norwegian Petroleum Directorate Norwegian Petroleum and Energy Minister
attracted bids from 33 (NPD) reported on September 25, only 0.2% Tina Bru said in a statement. “The high interest
companies in its latest below the forecast and down 0.9% month on expressed by the companies in new exploration
offshore round. month. acreage shows that our long-term petroleum
Output was up 26% year on year, however, policy has the desired effect, also during chal-
largely owing to the launch of Equinor’s Johan lenging times.”
Sverdrup oilfield in autumn 2019. The field is APA contests are held every year and invite
now flowing at a rate of 470,000 bpd. companies to apply to develop acreage in
Overall liquids extraction averaged 2.019mn well-developed areas. The goal is to make discov-
bpd last month, in line with the forecast but eries that can be tied to existing infrastructure,
down 2% m/m. Y/y it was up 21.4%. Gas pro- keeping costs low and supporting the utilisation
duction stood at 286.8mn cubic metres per day, of platforms and pipelines as the existing fields
coming in at 3.9% below the forecast. Output they are connected with see decline.
was down 6.2% m/m but up 8.6% y/y. Norway also stages frontier licensing rounds
The NPD reported separately on September on a less regular basis, inviting bids for less
25 that Norway’s latest Awards in Predefined explored areas where exploration is higher risk
Areas (APA) licensing round had attracted bids but can potentially result in large, play-open-
from 33 companies. They ranged from large ing finds. Progress in preparing the next round
international firms to mid-sized companies and has been slow, however, owing to concerns by
junior explorers. The deadline for applications environmentalists.
was September 22. The petroleum ministry in June suggested
On offer are 35 blocks, all located in the offering 136 blocks for oil and gas exploration in
Norwegian Sea. Awards are scheduled to be frontier areas, including eight in the Barents Sea
announced in early 2021. in Norway’s far north. Public consultation on the
“Predictable and stable framework conditions proposals ended on August 26. ™
POLICY

Sverdrup continues to flow

despite workers strike

NORWAY JOHAN Sverdrup, the biggest oilfield in West- operated safely,” Equinor said on its website.
ern Europe, is continuing to flow oil as usual Two other trade unions Industri Energi and
Only one labour union despite 43 workers at its platform going on strike Safe had threatened strikes but agreements were
is yet to reach an on September 30, operator Equinor reported on reached with NOGA, leaving just Lederne.
agreement. September 30. “We have key personnel for the operations of
The workers downed tools after wage talks [Sverdrup] , and sooner or later it will have to
between the Lederne trade union and the Nor- be shut down if the strike continues,” Lederne
wegian Oil and Gas Association (NOGA) broke union chief Audun Ingvartsen told Reuters on
down. The union is negotiating on behalf of September 30. “We will look at what we can do
around 1,000 workers, according to a govern- next later today, also at a possible escalation at
ment-appointed mediator, and has said it may other platforms, but we hope we could find a
expand industrial action if its demands are not solution before that.”
met. Norwegian rules mean the union will have
Sverdrup was brought on stream last autumn to give at least a four-day warning before other
and is now producing oil at a rate of 470,000 workers go on strike. NOGA says Lederne is
barrels per day (bpd). It accounts for around a demanding a larger pay rise than the other two
quarter of Norwegian oil supply and almost 20% unions but Lederne has denied this. Companies
of the North Sea’s total crude production. have been unwilling to adjust contracts to reflect
“Production continues as normal for the changes in work practices, the union said, add-
present, as the assessment is that the field can be ing that this would not cost more. ™

P18 www. NEWSBASE .com Week 39 01•October•2020