1 – Introduction
This report evaluates development projects approved on the Norwegian continental shelf (NCS) in 2007-18 and the experience gained by the industry related to their execution.
It provides an assessment of how far the licensees have succeeded in implementing projects to the planned schedule and cost estimate. An important purpose of the report is to share this type of information and the experience acquired by the Norwegian Petroleum Directorate (NPD) through its regular follow-up of the projects.
Finally, the report looks at the types of developments which can be expected on the NCS over the next few years and some of the associated challenges. It is important that the licensees on the NCS make active use of the findings in this report and other relevant experience in their project development work.
The NPD published its report on Vurdering av gjennomførte prosjekter in 2013 (in Norwegian only), covering experience with and lessons learnt from five developments. On the basis of this review, a number of key factors were identified which are considered important to take into account when executing any new project.
In the wake of this report, the authorities have strengthened their follow-up of developments in an early phase to ensure that important factors are in place. However, responsibility for planning and executing
projects rests with the licensees within the framework specified by the authorities.
A successful project is one completed on schedule and within budget, and without incidents related to health, safety or the environment (HSE). The field concerned must also meet expected production rates. It has been necessary during work on the report to limit its scope. The Petroleum Safety Authority Norway (PSA), which is responsible for HSE in the oil and gas sector, recently published a report which studied three development projects /5/.
In this report, the NPD has emphasised costs, schedules and reserve developments as well as operator experience. In order to describe progress with costs, the review has been based on projects with an approved plan for development and operation (PDO) or plan for installation and operation (PIO) in 2007-18.
The Ministry of Petroleum and Energy (MPE) reports the status of progress in development projects to the Storting (parliament) annually in Proposition 1S. As a result, the cost figures used in this report are already in the public domain. Particular attention is devoted in the report to projects developed with platforms or subsea installations, since these account for the majority of the cases considered.
Final costs, start-up date and reserve developments are compared with plans and estimates in the PDO documentation.