At NOK33.2 billion, net cash flow compared with NOK39.9 billion in 2008. But it is worth noting that cash flow for the first quarter was still higher than in the first quarter of 2007, when it was NOK29.5 billion.
Total oil and gas production for the first quarter averaged 1,295,000 barrels of oil equivalent per day (boe/d), compared with 1,306,000 for the same period of 2008. Gas production to March 31, 2009 was 3% higher than in the first three months of 2008. The output of oil and natural gas liquids (NGL) declined by five per cent, primarily as a result of the general fall in production from mature fields on the NCS. Increased deliveries from new fields such as Ormen Lange and Snohvit helped to counteract the overall production decline.
Revenues from gas sales for the first quarter rose by 12% from the same period of 2008, as a result both of higher prices and increased volume. The reason gas prices have remained relatively high is that these are related to oil prices, but with a time lag. Gas revenues for the first quarter totaled NOK27.3 billion, compared with NOK24.3 billion in the same period of last year. The volume of equity gas production sold during the first quarter 2009 was 9.7 billion standard cubic meters (scm) or 677,000 boe/d compared with 659,000 in 2008 – an increase of 3%.
Operating expenses amounted to NOK13.5 billion, compared with NOK15.1 billion in the same quarter of 2008. The cost of buying gas for onward sale was substantially lower in the first quarter of 2009, reflecting reduced purchases of replacement gas for Snohvit and of third-party gas in the US market. These costs were also reflected in revenues from gas purchased. Expenditure on operating fields and plants and for exploration was on a par with the first quarter of 2008.
Investment in the first quarter rose by 33% from the same period of 2008 to NOK5.7 billion. Continued field development on Ormen Lange and projects initiated on Troll Oil accounted for the biggest increases in capital spending. This was reinforced by development costs for the Gjoa field.
