NORWAY'S INVESTMENTS WILL FALL 9.3%
Norway is expected to decrease investments in oil and gas activities by 9.3% in 2016, Statistics Norway wrote on Tuesday, adding that the country should increase investments in electricity.
'The latest estimates for 2016 show that total investments are expected to amount to NOK 219.4 billion. This is 5.4 per cent lower than the corresponding figure for 2015. The decline is mainly due to a fall of 9.3 per cent within oil and gas' reads the statement.
Norway's investments in oil and gas extraction and pipeline transport for 2016 are now estimated at NOK 171 billion. The decrease has to do with lower investments in exploration, fields on stream and pipeline transport.
'The decrease is due to a sharp decline in the exploration estimate. The exploration estimate decreased by 35.2 per cent to NOK 21.5 billion.'
On the other hand, field development, onshore activity and shutdown and removal are expected to increase the investment level compared to 2015.
LUNDIN COMMENCES DRILLING ON ØRNEN PROSPECT
Despite the gloomy forecasts, Lundin Norway commenced drilling of exploration well 7130/4-1 on the Ørnen prospect.
'The reservoir is expected to consist of Upper Permian carbonates. The Ørnen prospect is estimated to contain gross unrisked prospective resources of 354 million barrels of oil equivalents (MMboe)' Lundin wrote on Tuesday.
Lundin Norway is the operator of PL708 with a 40 percent working interest. Edison Norge (20%), Lukoil Overseas North Shelf (20%), Lime Petroleum Norway (10%) and North Energy (10%) are Lundin's partners.
Apart from the month of June, the country consistently reported an year-on-year increase in monthly gas production throughout 2015.
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REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.