The value of the SDFI is estimated to 1,234 billion NOK

The value of the State’s Direct Financial Interest (SDFI) as of 1 January 2014 is estimated to 1,234 billion NOK. This is the result of the recent valuation of the SDFI portfolio carried out by Rystad Energy on behalf of the Ministry of Petroleum and Energy.

- The report illustrates the substantial values the SDFI portfolio represents to the Norwegian State. The annual net cash flows from the SDFI portfolio, which in 2012 and 2013 was 147 and 125 billion NOK respectively, represent a major contribution to the Government Pension Fund – Global, says Tord Lien, the Norwegian Minister of Petroleum and Energy.

The SDFI portfolio has, along with the overall oil and gas industry, been subject to slightly downward trending oil prices, increasing costs and weaker free cash flow.

Increase in expected production has contributed to increased value from 2012 till 2014. This is primarily due to upgraded resource estimates for discoveries such as Johan Sverdrup and Johan Castberg, as well as producing fields, like Snøhvit and Oseberg. Cost inflation has led to a higher increase in investments than expected from the increase in resources alone. As a result the value of the SDFI portfolio is almost the same in 2014 and 2012, despite significant positive net cash flows during the period.

- Continued optimization of recovery and utilization of the resources in our existing fields and discoveries is of great importance. The government believes it is crucial that the SDFI portfolio is actively managed and safeguarded in a sustainable manner, says the Minister.

The valuation of the SDFI-portfolio is part of the Ministry of Petroleum and Energy’s follow-up of the SDFI and Petoro AS. Petoro manages the SDFI on behalf of the government. 

 

Related news

Latest news

USCG confirms OPtimarin in Line for Ballast Water Approval

The United States Coast Guard (USCG) has confirmed that Norwegian ballast water treatment specialist Optimarin has become the first supplier to submit an application for type approval.

New order for Servogear

Servogear announces that they have received a new order from Brødrene Aa. 

Norwater AS reports boost in sales

The Norwater team reports of great interest and busy days in 2016. In a press release, they state that as of the first 8 months of the year, 2016 sales are already beyond target for the year as a whole.

Gaia-facts reaching ground control

The European Space Agency (ESA) has released the first data from the Gaia mission, which has the tremendous task of building the most precise 3D map of the Milky Way.

Polish delegation for Norwegian circular waste management

Against the background of the EU's ambitious waste management targets, Norwegian and Polish stakeholders met on Wednesday 14 September in Drammen.

Milestone at Mongstad Water Treatment Plant

SAR AS reports that an extensive upgrade to the water treatment plant at Mongstad reached a new milestone July. 

Servogear signs new contract with Özata Shipyard

Servogear has announced the signing of a new contract with Özata Shipyard in Turkey. The contract includes the delivery of Servogear Ecoflow PropulsorTMfor two 39 meter passenger catamarans (YN 41 & YN 42).

Statoil and Petrobras strengthen strategic partnership

Statoil reports that they have strengthened their cooperation in Brazil by signing a Memorandum of Understanding (MoU) with Petrobras.

TechInvent and Island Offshore/Centrica announced winners of ONS Innovation Award

TechInvent and Island Offshore/Centrica were announced winners of the ONS 2016 Innovation Awards, at the Innovation Awards Ceremony Tuesday 30 August.