The price of building an oil field on the Norwegian continental shelf has on average fell by 40 per cent since the autumn of 2014, according to figures from the Oil Directorate (NPD).
an analysis made by the eight planned developments are approaching startup dates and showing a decrease in development costs.
The reasons for the reduction in costsvare a combination of easier development solutions and more efficient drilling. In addition to lower prices of labor and equipment, according to NPD.
The directorate has reviewed the projects Utgard, Oda, Zidane Trestakk, Slughorn, Johan Castberg, Snorre Expansion Project and Johan Sverdrup phase 2. The analysis shows that the estimated cost of these projects has fallen from around 270 billion to 150 billion NOK.
– This is a significant and very pleasing reduction, said NPD director of development and operations, Ingrid Sølvberg.
She warns simultaneously against the introduction of short-term savings measures at the expense of long-term value, and toward cutting the workforce in key institutions.
Source: NTB scanpix / Norway Today