Sokkeldirektoratet

Exploration activity has been profitable in all ocean areas

drivkrefter

Exploration activity has been profitable in all ocean areas. Over the last five years, the value of the discoveries made is more than twice the exploration costs. (Illustration image)

9/23/2024 A Norwegian Offshore Directorate analysis of exploration activity over the last 20 years (2004-2023) shows that the discoveries are valued at three times the costs expended.

The Norwegian Offshore Directorate has calculated the overall net cash flow for exploration activity during the 2004-2023 period at about NOK 3800 billion. In current value (total net present value), this amounts to more than NOK 2000 billion.

The discoveries are valued at three times the costs expended.

All exploration investments from this period have already been repaid by the discoveries that have come on stream. About 50 of 190 discoveries have been developed and are producing. This means that around three-quarters of the resources discovered during these years have yet to be produced. These investments will remain profitable as more fields come on stream.

Read more in the Norwegian Offshore Directorate's Resource Report 2024.

Value creation from exploration in the last 20 years (2004–2023).

Value creation from exploration in the last 20 years (2004–2023). This is Figure 6.3 in the Resource Report 2024.

Exploration over time is necessary

Large discoveries contribute the most to value creation, but are also crucial for establishing new infrastructure in new areas that makes it possible to develop smaller discoveries. Together, large numbers of small discoveries have created substantial values.

Between 2004 and 2023, about NOK 660 billion has been invested in exploring for oil and gas on the Norwegian continental shelf (NCS). This has resulted in more than 300 discoveries, the sum of which constitutes a resource growth of about 1800 million Sm3 of o.e. Production has been deemed unlikely for 110 of these discoveries. This means that 190 of the discoveries correspond to just under 1600 million Sm3 of o.e.

Substantial resources left on the NCS

Exploration activity has been profitable in all ocean areas. Over the last five years, the value of the discoveries made is more than twice the exploration costs. Several of these discoveries are highly profitable, because they can be tied back to existing infrastructure at the right time. Discoveries in the Troll area in the North Sea are particularly good examples of this.

Norway still has extensive oil and gas resources on the NCS. These resources can provide a basis for production, export and value creation for society for many years to come. Such development will require continued exploration and additional investment in fields, discoveries and infrastructure. Failure to invest could lead to rapid dismantling of the petroleum activities.

Contact
postboks@sodir.no

Tel: +47 51 87 60 00

Updated: 9/23/2024

Latest news

One company offered acreage for CO2 storage
6/13/2025 Today, Equinor Low Carbon Solution AS has been offered an exploration licence for CO2 storage in the North Sea.
Drilling permit for wellbore 7117/4-1
6/12/2025 The Norwegian Offshore Directorate has granted Equinor Energy AS drilling permit for wellbore 7117/4-1 in production licence 1238.
Full house to hear about new technology on the NCS
6/6/2025 Technology is one of the tools that can help generate additional values from the Norwegian continental shelf (NCS). At Technology Day new technology from different suppliers are presented.
New interactive map of deep sea data
6/5/2025 Today, the Norwegian Offshore Directorate is launching an interactive map, Deep Sea Surveys.
New Director of Offshore development and technology
6/5/2025 Producing the resources on the Norwegian continental shelf (NCS) so they generate the greatest possible values for society is an important driving force for the Norwegian Offshore Directorate's new director.
Proved suitable properties for CO2 injection and storage (9/6-1)
6/2/2025 A wildcat well drilled by Harbour Energy Norge and licensees in the “Havstjerne” storage project confirmed a reservoir that is suitable for injection and storage of carbon dioxide (CO2).
Oil discovery and dry well in the North Sea (31/4-A-23 F and 31/4-A-23 G)
5/28/2025 OKEA and the licensees in production licence 055 have discovered oil along the eastern flank of the Brage field.
Drilling permit for wellbore 35/11-31 S
5/23/2025 The Norwegian Offshore Directorate has granted Equinor Energy AS drilling permit for wellbore 35/11-31 S in production licence 090.
Drilling permit for wellbore 15/5-8 S and 15/5-8 A
5/22/2025 The Norwegian Offshore Directorate has granted Equinor Energy AS drilling permit for wellbore 15/5-8 S and 15/5-8 A in production licence 1140.
Production figures April 2025
5/20/2025 Preliminary production figures for April 2025 show an average daily production of 2 030 000 barrels of oil, NGL and condensate.