Norwegian oil output in July above NPD prediction

Norwegian oil production in July has risen above predictions made by the Norwegian Petroleum Directorate (NPD) after June’s numbers were below expectations.

According to the directorate’s report on Monday, preliminary production figures for July 2020 show an average daily production of 2,062,000 barrels of oil, NGL, and condensate.

Average daily liquids production in July was: 1,739,000 barrels of oil, 296,000 barrels of NGL, and 27,000 barrels of condensate.

It is worth noting that, the Norwegian Government decided to implement a cut in Norwegian oil production 29 April 2020. The production figures for oil in July included this cut of 134,000 barrels per day. The cut will apply for the entire second half of 2020.

The NPD said that the oil production forecasts have been updated in the Government’s proposed Revised National Budget for 2020.

The update was presented on 12 May and takes the authorities’ oil production regulation into account, as well as the delayed start-up of fields under development and oil production in the first quarter.

Oil production in July is 0.8 per cent higher than the NPD’s forecast, and 0.1 per cent below the forecast so far this year.

The total petroleum production for the first seven months in 2020 is about 134.8 million Sm3 oil equivalents (MSm3 o.e.), broken down as follows: about 57.6 MSm3 o.e. of oil, about 10.9 MSm3 o.e. of NGL and condensate and about 66.2 MSm3 o.e. of gas for sale.

The total volume is 7.3 MSm3 o.e. higher than in 2019.