Norwegian Monthly Gas Production Exceeds Forecasts for Third Month
While Norway’s monthly gas production exceeded forecasts for the third month in a row and Statoil continued awarding contracts for Johan Sverdrup, a small Norwegian company - North Energy ASA - announced its intention to lay off personnel a few hours after the Petroleum Safety Authority Norway thrashed the Norwegian company for non conformities in connection with its Sleipner gas field in North Sea.
This mix of high production levels and investments in big fields, combined with the need to cut costs while avoiding non-conformities and irregularities, perfectly explains the current complexities of the gas industry in these tough market conditions.
BAD NEWS
On Wednesday, North Energy ASA adopted additional extensive cost cuts measures to respond to persistent difficult market conditions.
"The board of North Energy must respond to the persistently difficult and to some extent deteriorating market conditions affecting our industry. All the signs are that we must expect a tough market to endure for a long time to come and, against that backdrop, feel we must take additional responsible steps” Chair Anders Onarheim commented in a note.
The decision implies a concentration of all activities in Oslo, meaning hat the Tromsø and Stavanger offices will be closed with repercussion on “a number of employees.”
The Petroleum Safety Authority Norway wrote that the results of its audit of Statoil’s administration of energy preparedness identified non-conformities in connection with maintenance of offshore cranes, maintenance programmes, competence, training of emergency preparedness personnel and other five points.
‘Statoil has been given a deadline of 26 September 2015 to report on how the non-conformities and improvement points will be dealt with’ reads a note released on Tuesday.
GOOD NEWS
Norwegian gas production remains at levels higher than the ones registered in 2014, with August production sensibly higher than the one of the same period in 2013.
‘The total petroleum production for the first eight months in 2015 is about 150.0 million Sm3 oil equivalents (MSm3 o.e.), broken down as follows: about 59.9 MSm3 o.e. of oil, about 14.7 MSm3 o.e. of NGL and condensate and about 75.4 MSm3 o.e. of gas for sale. The total volume is 8.4 MSm3 o.e. higher than for the same period in 2014’ reads a note released on Wednesday.
Also on Wednesday, Statoil released a note announcing the award of a contract to Sweden-based ABB AB for fabrication and installation of two high-voltage cables supplying power from shore to the Johan Sverdrup field.
‘The total contract value is NOK 700 million, plus options’ said the company.
The Johan Sverdrup field partners: Statoil 40.0267% (operator), Lundin Norway 22.6%, Petoro 17.36%, Det norske oljeselskap 11.5733% and Maersk Oil 8.44%.