Norwegian oil watchdogs believe the country’s estimated oil reserves could grow by more than seven billion barrels over the next decade.
The Norwegian Petroleum Directorate says it expects oil reserves on the Norwegian Continental Shelf to increase by 1200million standard cubic metres over the next ten years – equivalent to around 7.5billion barrels.
The figures would represent a significant boost for North Sea exploration hopes, with more than half the resources thought to be in previously discovered fields.
However, the extra oil would only be available if investment on exploration and infrastructure on the NCS is maintained, the organisation warned.
“This will mean lower unit costs and extended field lifetime, which also means that we can implement improved oil recovery measures,” said director Jan Bygdevoll.
“Cost trends in the petroleum industry pose a challenge, both for developing discoveries and for project commitments that can increase recovery from a field.
“For example, drilling costs have more than doubled during the last 10 years. This cost growth could threaten profitability of future projects.”
The figures come as the directorate publishes its new resources report for 2014, providing an overview of discoveries and getting the best from the Norwegian shelf.
In an echo of comments made by their UK equivalents, the Norwegian Petroleum Directorate warned companies they would need to work to improve oil recovery rates and increase the scale of exploration across the continental shelf to make the most of the finds.
More than 400 discoveries have been made in Norwegian waters since the beginning of the oil boom in 1967, with more than £300billion invested in exploration and production opportunities during that time.
“Continued exploitation of this infrastructure is essential for future value creation on the shelf,” the NPD warned.
The Norwegian edition of the report can be read here – an English version is due to be published in the near future.
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