Norway’s Exports to Europe Decrease in 2014
Dry gas deliveries within Gassco’s operatorship from Norway to Germany, Belgium, France and the United Kingdom decreased 1.5% to 101 billion standard cubic metres, while a local company warns that tumbling oil prices might lead to spending cuts on the Norwegian continental shelf.
“Norwegian gas makes a substantial contribution to energy supply in major European countries, and these exports remain at a high and stable level characterised by very good regularity,” Brian Bjordal, chief executive of Gassco, commented in a note released on Tuesday.
According to Gassco’s data, Norwegian gas exports declined for the second consecutive year after the all-time high registered in 2012.
TGS GOOD 2014 RESULTS, BUT DIFFICULT 2015 AHEAD
Also on Tuesday, Asker-based TGS provided an update on Q4 2014, announcing good results but a decline in expected revenues.
The Norwegian seismic explorer expects 2014 full year revenues at 915 MUSD, and announced targets revenues for 2015 at 750 MUSD. The company expects a cautious approach from the customers both in 2015 and in 2016.
The grim outlook for 2015 was confirmed by a Wood Mackenzie report published on Tuesday.
The consultancy firm warned that the cuts will be significant, both in the exploration and development segments.
"The corporate appetite for new exploration acreage in Norway remained strong last year, shown by a record year for licences awarded for mature acreage. Norway stayed a global hotspot for exploration activity, with 59 exploration and appraisal (E&A) wells drilled - the same number as in 2013… However, looking at this in more detail reveals that 2014 was actually a lacklustre year for exploration. Despite 44 exploration wells being drilled, there were only four discoveries that we would class as commercial – or likely to be developed" Malcolm Dickson, Principal North Sea Analyst for Wood Mackenzie commented in the press release.
The consultancy firm underlined that VNG's Pil & Bue and Lundin registered the two main successes, while Statoil posted ‘disappointing explorations results in its high profile Barents sea acreage.’
“Despite our projected production increase this year, we expect to see a slow down in exploration, M&A activity and investment – which we currently expect to fall by 25%, to around NKr 136 billion (US$22 billion). The current uncertainty over the oil price and future project returns means that cuts in exploration, deals and development spend will be unavoidable for the Norwegian sector in 2015" Dickson added in the summary.