In the proposed national budget for 2014, the government calls for allocating a total of NOK 456.2 million to operating expenses, equipment procurement and maintenance in the Norwegian Petroleum Directorate (NPD).
The proposal entails allocation of NOK 247.1 million to operating expenses next year. This is an increase of NOK 7.6 million compared with the final budget for 2013.
Apart from normal price and wage adjustments, the government wants to increase the allocations by NOK 4 million for follow-up of fields in operation. This will increase the NPD’s capacity for being an initiator for improved oil recovery.
“We are pleased that the government wants to allocate more funds within this important area, and believe that increased efforts by the Norwegian Petroleum Directorate can contribute to new projects that will result in improved recovery and thus also increased value creation from operating fields,” says Arne Holhjem, director for technology, environment and improved recovery in the Norwegian Petroleum Directorate.
The efforts will be focused on fields such as Snorre, Troll, Heidrun and the major chalk fields in the North Sea (Ekofisk and Valhall).
These fields are important due to significant remaining resources, potential major investment decisions and important decisions with regard to long-term development solutions.
The government proposes allocating NOK 4 million to procurement/maintenance. This is the same amount as in the final budget for 2013.
Special operating expenses
Special operating expenses include Audits of the petroleum activities, Assignments and collaborations and Surveys, etc. The government proposes allocating a total of NOK 205.1 million for this in 2014. This is an increase of NOK 2 million compared with the final budget for 2013.
The Audits of the petroleum activities item covers technical measurement audits, participation in licence meetings and expenses for external consultants. The expenses are refunded by the operating companies. The government proposes spending NOK 3.1 million for this.
The budget includes NOK 72 million in expenses for Assignments and collaborations in 2014. The expenses cover tasks within data management and recovery technology, as well as the NPD’s share of collaboration projects Diskos and Force. Furthermore, it includes expenses related to the NPD’s cooperation agreement with Norad (Norwegian Agency for Development Cooperation) regarding consulting within petroleum management for developing countries.
The government is allocating NOK 130 million in the budget to Surveys, etc. (mapping, seismic surveys and other geological data acquisition) headed by the NPD.
In total, the government is budgeting revenues of NOK 106.4 million via the NPD in 2014. Of this, NOK 25 million will come from fee revenues and NOK 71.4 million from assignments and collaborations. The income from refund of audit expenses is estimated at NOK 10 million.
Press Release, October 16, 2013