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Norway reduces oil output

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Oilfield Technology,

Norway is to reduce its oil output between June and December 2020.

Tina Bru, the country's Minister of Petroleum and Energy, said: "We will cut Norwegian production by 250 000 bpd in June and by 134 000 bpd in the second half of 2020. In addition, the start-up of production of several fields will be delayed until 2021. Consequently, the total Norwegian production in December 2020 will be 300 000 barrels less per day than originally planned by the companies. The regulation will cease by the end of the year."

The basis for the regulation is a reference production of 1.859 million bpd. Thus, a cut of 250 000 bpd in June 2020 gives an upper limit for oil production on the Norwegian Continental Shelf of 1.609 million bpd in June. A cut of 134 000 bpd in 2H20 gives an upper limit for oil production on the Norwegian Continental Shelf in the same period of 1.725 million bpd.

"The cut will include oil fields on the Norwegian Continental Shelf and be fairly distributed between the fields and thereby between companies. It will imply a limitation of production for those oil companies with ownership shares in the relevant oil fields. Gas fields are exempt. Thus, the cut will not affect Norwegian gas production or Norwegian gas exports," Bru added.

The reference production does not include fields where the operating company in the national budget process reported expected production start-up in 2020, but where start-up now is postponed until 2021, inter alia as a consequence of infection control measures. This applies to the fields Yme, Martin Linge, Njord, Hyme, Bauge and Tor.

The regulation covers Norwegian oil production. The following fields will therefore be exempt from the regulation:

  • Gas and condensate fields.
  • Fields bordering on other countries.
  • Some fields, where particular problems related to resource management apply in a production regulation; including fields in a late tail end production phase.

The production regulation will be implemented by the Ministry of Petroleum and Energy granting the fields a revised production permit for the month.

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