This is down from DKK 63 billion in the second quarter of this year.
Gas production increased by 16 per cent compared to the third quarter of last year, while oil production was 1,053 million barrels of oil equivalent per day, an increase of 95 oil equivalents compared to the same period last year.
Net cash flow from the oil and gas operations per the third quarter of 2024 thus ended at NOK 174 billion. The cash flow is transferred in its entirety to the state.
– We intend to deliver another good annual result from SDØE. Good production from existing fields and start-up of new ones have contributed to an increase in total volume. The demand for oil and gas in the European market is high, even though the price of oil and gas is somewhat lower this year compared to last year, says CEO of Petoro Kristin F. Kragseth in a press release.
Petoro’s main task is to maximize the value of the Norwegian State’s direct economic involvement (SDØE), which is the Norwegian State’s direct holdings in oil and gas operations. Petoro’s portfolio includes a third of the oil and gas reserves on the Norwegian continental shelf, as well as platforms, pipelines and facilities on land.
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**Interview with Kristin F. Kragseth, CEO of Petoro**
**Editor:** Kristin, thank you for joining us today. Petoro’s third-quarter results show a significant revenue drop, from DKK 63 billion in the previous quarter to your new figures. What do you attribute this decline to, especially given that production rates for both oil and gas have increased?
**Kragseth:** Thank you for having me. The decrease in revenue can be largely attributed to lower market prices for oil and gas compared to last year. While we’ve indeed seen an increase in production—up 16% in gas and a steady output of 1,053 million barrels of oil equivalent per day—the market conditions are heavily influenced by global dynamics that we cannot control.
**Editor:** You mention strong production numbers, yet the cash flow from operations has remained robust at NOK 174 billion, transferred entirely to the state. How do you see the relationship between production levels and state revenue moving forward?
**Kragseth:** The relationship is complex. While increased production volumes are favorable, they must be balanced with market pricing to truly maximize state revenue. Nonetheless, our focus remains on enhancing production from existing fields while efficiently starting new operations, which positions us well to respond to the high demand in the European market.
**Editor:** As we look to the future, particularly in terms of energy transitions and sustainability, how does Petoro plan to navigate the challenges posed by declining fossil fuel demand?
**Kragseth:** That’s a crucial element of our strategy. Our primary goal is to ensure that we maximize the value of the Norwegian State’s direct economic involvement. As the energy landscape evolves, we aim to do so while adhering to sustainability principles, embracing innovations that could complement our existing operations.
**Editor:** with energy prices fluctuating and geopolitical tensions influencing markets, how do you foresee Petoro’s role in stabilizing state revenue and meeting domestic and European energy needs?
**Kragseth:** Our role will be to ensure a reliable supply while navigating these uncertainties. We foresee that the demand for oil and gas will remain strong, despite fluctuating prices. However, the true challenge lies in balancing economic viability with environmental commitments.
**Editor:** Thank you, Kristin. Given the current reports, what do you think—should the state invest more heavily in alternative energy projects, or prioritize maximizing its existing oil and gas portfolio? Let’s hear your thoughts on this debate!