Corona pandemic decimates Norway’s oil income, revenues fall by 42%

Johan Sverdrup platformPhoto: Carina Johansen / NTB
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The Norwegian state’s direct revenues from the oil business have fallen by 42% so far this year. However, revenues increased by NOK 5 billion from the second to the third quarter.

Transfers from the central government’s State’s Direct Financial Interest in the petroleum activities (SDFI) amounted to NOK 12 billion in the third quarter, up from NOK 7 billion in the previous quarter.

The increase is due to a temporary easing of infection control measures globally, which led to growth in demand and an increase in oil and gas prices, according to Petoro.

So far this year, Petoro – the state-owned company that formally owns most of the assets in the SDFI – has delivered a cash flow of NOK 45 billion to the Treasury.

Decreasing revenues

That is a decrease of 42% compared to the same period in 2019.

“The decline compared to last year is primarily due to the large fall in demand that the COVID-19 pandemic has caused,” Acting CEO of Petoro Kjell Morisbak Lund said.

But even in such a turbulent market, the SDFI portfolio still provides significant income.

As of January 1, 2020, the SDFI portfolio was valued at NOK 1,044 billion in Rystad Energy’s valuation carried out for the Ministry of Petroleum and Energy.

© NTB Scanpix / #Norway Today

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