The price tag for developing a field on the Norwegian shelf has declined by an average of more than 40 per cent since the autumn of 2014, according to the NPD’s analysis of eight planned developments that are approaching start-up.
The decline is a result of a combination of simpler development concepts and more efficient drilling. Lower prices for work and equipment are also a contributing factor.
The investment estimates for the Utgard, Oda, Zidane, Trestakk, Snilehorn, Johan Castberg, Snorre Expansion and Johan Sverdrup Phase 2 projects have fallen from about NOK 270 to 150 billion, according to the operating companies’ own calculations. The downward adjustments have been made in connection with various decision phases in project implementation.
‘This is a significant and very welcome reduction’, says the NPD’s Director of development and operations, Ingrid S?lvberg. ‘The oil companies and the supplier industry have made a tremendous effort in streamlining the activities, and now we can see that these measures are working.’