Home / Oil & Energy / Oil & Companies News / NORWAY DATA: Crude output dips 3% in May as gas production prioritized

NORWAY DATA: Crude output dips 3% in May as gas production prioritized

Norway’s crude production fell by 2.5% on the year in May and by 2.6% compared with April 2022, data published June 21 showed, as the industry heads for summer maintenance and operators prioritize gas.

Crude output in May totaled 1.62 million b/d, down from 1.66 million b/d a year earlier, the Norwegian Petroleum Directorate said.

Overall liquids production, including natural gas liquids, was down a less steep 0.8% on the year, at 1.83 million b/d, reflecting a 15.1% increase in gas output compared with a year earlier to 323 million cu m/d.

Norway has been boosting gas output in response to Europe’s energy crisis and Russian supply reductions with a view to helping maximize stored volumes ahead of the winter.

A steep fall in oil production is forecast by the NPD in June as part of seasonal maintenance, while it forecasts gas output to increase as part of planned energy security efforts. The latter have included directing gas to market that would normally be reinjected into oil fields to boost pressure levels and liquids production.

Among oil fields set for temporary shutdown is the giant Johan Sverdrup field, which accounts for nearly a third of the country’s output and was scheduled to begin maintenance on June 20, lasting into the first half of July. The work is part of preparations for the second Johan Sverdrup development phase to come on stream in the fourth quarter, lifting the field’s capacity from 535,000 b/d to 755,000 b/d.

The Ekofisk area fields, which contribute to Platts Dated Brent benchmark, were also seeing reduced June loadings, likely due to maintenance.

On gas, state-controlled Equinor has said it will maintain high production at the Troll, Oseberg and Heidrun fields through the summer following a permitting decision by the petroleum and energy ministry, enabling an additional 1.4 Bcm of exports. Maintenance at Oseberg is postponed until September as part of this effort, the company has said.

Dated Brent, which is currently based on two UK crude grades and three Norwegian grades, was assessed down 84 cents/b on June 20 at $119.74/b.
Source: Platts

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping