State's Direct Financial Interest
Encyclopedia
State's Direct Financial Interest (SDFI) (Norwegian: Staten direkte økonomiske engasjement (SDØE)) is a portfolio
of the Norwegian government's directly owned exploration and production licenses for petroleum
and natural gas
on the Norwegian continental shelf
. The Norwegian government-owned company Petoro
has managed the SDFI portfolio since 2001.
companies
to find and produce petroleum in specific areas.
The Norwegian government creates income from the petroleum sector through tax
es and fee
s as well as itself being a participant in the industry. The Norwegian government initially participated in the industry through the creation and development of the state oil company Statoil
. From 1973 to 1985 the government awarded Statoil 50% or more of Norway's petroleum development licenses. In the 1980s political discourse questioned this arangement as Statoil's cash flow
was becoming very large in relation to Norway's gross national product. The solution was splitting Statoil's ownership. SDFI was created on January 1, 1985 as a separate juridical entity managed by Statoil. Statoil's original ownership was divided in two, with approximately 20% retained by Statoil itself, and the rest given to SDFI.
When Statoil was partially privatised in 2001 this solution was no longer desirable and a new state-owned management company Petoro
was created to manage SDFI. The Norwegian government also reduced the size of SDFI by 20%, with 15% of the portfolio going to Statoil and 5% to Norsk Hydro
.
.
The states portion of the total reserves on the Norwegian shelf are as of January 1, 2005 294 millioner Sm³ oil and 1005 mrd Sm³ natural gas. This represent 24% of the oil reserves and 41.6% of the natural gas reserves, and makes Petoro the largest licenceholder on the shelf. As of January 1, 2006 the value of SDFI was NOK
850 billion.
The states portion of the oil production on the shelf was in 2004 about 46.6 million Sm³, 14% of the sates reserves at the beginning of 2004.
The table below lists all remaining field reserves as of January 1, 2005 where the state by Petoro has ownerships in the production, with prosent ownership in the field, crude oil listed in million standard cubic meters MSm³ and in million barrels that belong to the state, gass in billion standard cubic meters GSm³, Natural gas liquids in million tonnes, Natural gas condensate
in MSm³ and the total of all remaining petroleum in the field given in million oil equivalents (oe).
All numbers are from the Norwegian Oil Directorate.
Portfolio (finance)
Portfolio is a financial term denoting a collection of investments held by an investment company, hedge fund, financial institution or individual.-Definition:The term portfolio refers to any collection of financial assets such as stocks, bonds and cash...
of the Norwegian government's directly owned exploration and production licenses for petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
and natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
on the Norwegian continental shelf
Norwegian continental shelf
The Norwegian continental shelf is the continental shelf over which Norway exercises sovereign rights as defined by the United Nations Convention on the Law of the Sea...
. The Norwegian government-owned company Petoro
Petoro
Petoro, a company wholly owned by the state of Norway, manages Norway's portfolio of exploration and production licenses for petroleum and natural gas on the Norwegian continental shelf. This portfolio is collectively called State's Direct Financial Interest . The company also has a control...
has managed the SDFI portfolio since 2001.
History and background
The Norwegian government claims ownership of all resources on and under the sea in the geographical area known as the Norwegian continental shelf. The Norwegian government awards production licences to cooperatingCooperation
Cooperation or co-operation is the process of working or acting together. In its simplest form it involves things working in harmony, side by side, while in its more complicated forms, it can involve something as complex as the inner workings of a human being or even the social patterns of a...
companies
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
to find and produce petroleum in specific areas.
The Norwegian government creates income from the petroleum sector through tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
es and fee
Fee
A fee is the price one pays as remuneration for services. Fees usually allow for overhead, wages, costs, and markup.Traditionally, professionals in Great Britain received a fee in contradistinction to a payment, salary, or wage, and would often use guineas rather than pounds as units of account...
s as well as itself being a participant in the industry. The Norwegian government initially participated in the industry through the creation and development of the state oil company Statoil
Statoil
Statoil ASA is a Norwegian petroleum company established in 1972. It merged with Norsk Hydro in 2007 and was known as StatoilHydro until 2009, when the name was changed back to Statoil ASA. The brand Statoil was retained as a chain of fuel stations owned by StatoilHydro...
. From 1973 to 1985 the government awarded Statoil 50% or more of Norway's petroleum development licenses. In the 1980s political discourse questioned this arangement as Statoil's cash flow
Cash flow
Cash flow is the movement of money into or out of a business, project, or financial product. It is usually measured during a specified, finite period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company's value and situation.Cash flow...
was becoming very large in relation to Norway's gross national product. The solution was splitting Statoil's ownership. SDFI was created on January 1, 1985 as a separate juridical entity managed by Statoil. Statoil's original ownership was divided in two, with approximately 20% retained by Statoil itself, and the rest given to SDFI.
When Statoil was partially privatised in 2001 this solution was no longer desirable and a new state-owned management company Petoro
Petoro
Petoro, a company wholly owned by the state of Norway, manages Norway's portfolio of exploration and production licenses for petroleum and natural gas on the Norwegian continental shelf. This portfolio is collectively called State's Direct Financial Interest . The company also has a control...
was created to manage SDFI. The Norwegian government also reduced the size of SDFI by 20%, with 15% of the portfolio going to Statoil and 5% to Norsk Hydro
Norsk Hydro
Norsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. The Norwegian state holds a 43.8 percent...
.
Values in SDFI
Petoro is registered as owner for the states portions with permissions 93 licences. This also gives portions of production from 36 fieldsOil field
An oil field is a region with an abundance of oil wells extracting petroleum from below ground. Because the oil reservoirs typically extend over a large area, possibly several hundred kilometres across, full exploitation entails multiple wells scattered across the area...
.
The states portion of the total reserves on the Norwegian shelf are as of January 1, 2005 294 millioner Sm³ oil and 1005 mrd Sm³ natural gas. This represent 24% of the oil reserves and 41.6% of the natural gas reserves, and makes Petoro the largest licenceholder on the shelf. As of January 1, 2006 the value of SDFI was NOK
Norwegian krone
The krone is the currency of Norway and its dependent territories. The plural form is kroner . It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown"...
850 billion.
The states portion of the oil production on the shelf was in 2004 about 46.6 million Sm³, 14% of the sates reserves at the beginning of 2004.
The table below lists all remaining field reserves as of January 1, 2005 where the state by Petoro has ownerships in the production, with prosent ownership in the field, crude oil listed in million standard cubic meters MSm³ and in million barrels that belong to the state, gass in billion standard cubic meters GSm³, Natural gas liquids in million tonnes, Natural gas condensate
Natural gas condensate
Natural-gas condensate is a low-density mixture of hydrocarbon liquids that are present as gaseous components in the raw natural gas produced from many natural gas fields....
in MSm³ and the total of all remaining petroleum in the field given in million oil equivalents (oe).
All numbers are from the Norwegian Oil Directorate.
| Feltnavn |
SDØEs % andel |
Oil MSm³ |
Gas mil barrel Barrel (unit) A barrel is one of several units of volume, with dry barrels, fluid barrels , oil barrel, etc... |
Gas Natural gas Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural... GSm³ |
NGL Mtonn |
Kond. Natural gas condensate Natural-gas condensate is a low-density mixture of hydrocarbon liquids that are present as gaseous components in the raw natural gas produced from many natural gas fields.... MSm³ |
Sum mill oe |
|
| 1 | Troll Troll oil field Troll is a natural gas and oil field in the Norwegian sector of the North Sea, North-West of Bergen, west of the island of Fedje.Although Troll is primarily a gas field – one of the biggest in the North Sea, holding 60% of Norway’s gas reserves – it also possesses significant quantities of oil,... |
0,56 | 43,12 | 271,22 | 632,02 | 17,25 | -1,51 | 706,41 |
| 2 | Ormen Lange | 0,36 | 0,00 | 0,00 | 136,85 | 0,00 | 8,06 | 144,91 |
| 3 | Åsgard | 0,35 | 11,61 | 73,03 | 68,94 | 11,72 | 12,32 | 115,14 |
| 4 | Heidrun Heidrun oil field The Heidrun oil field is an oil and gas field discovered in 1985 in the Norwegian sector of the Norwegian Sea, named after the goat Heiðrún from Norse mythology.... |
0,58 | 43,91 | 276,19 | 19,31 | 1,51 | 0,00 | 66,09 |
| 5 | Snøhvit | 0,30 | 0,00 | 0,00 | 48,06 | 1,53 | 5,37 | 56,34 |
| 6 | Oseberg Oseberg oil field Oseberg is an offshore oil field with a gas cap in the North Sea located northwest of the city of Bergen on the southwestern coast of Norway.... |
0,34 | 10,99 | 69,13 | 27,79 | 1,11 | 0,00 | 40,89 |
| 7 | Snorre Snorre oil field Snorre is an oil and gas field in the Tampen area in the southern part of the Norwegian Sea. The sea depth in the area is . Snorre is operational since August 1992. It was the first field developed by Saga Petroleum.-Production:... |
0,30 | 33,90 | 213,23 | 0,39 | 0,21 | 0,00 | 34,69 |
| 8 | Grane Grane oil field Grane is an offshore oil field in the North Sea located west of the city of Haugesund on the western coast of Norway. It is Norway's first heavy crude oil production field and Statoil's largest heavy oil field. The oil from the field, located in Block 25/11 is transported to Sture terminal via... |
0,30 | 33,75 | 212,29 | 0,00 | 0,00 | 0,00 | 33,75 |
| 9 | Visund | 0,30 | 4,74 | 29,81 | 15,66 | 2,01 | 0,00 | 24,22 |
| 10 | Kvitebjørn | 0,30 | 5,31 | 33,40 | 15,39 | 0,66 | 0,00 | 21,95 |
| 11 | Norne Norne oil field Norne is an oil field located around north of the Heidrun oil field in the Norwegian Sea. The sea depth in the area is . The field is roughly from the landfall at Dornum in Germany. Norne lies in a licence which was awarded in 1986, and embraces blocks 6608/10 and 6608/11. The Alve field nearby... |
0,54 | 13,99 | 88,00 | 5,51 | 1,13 | 0,00 | 21,65 |
| 12 | Gullfaks Sør Gullfaks oil field Gullfaks is an oil and gas field in the Norwegian sector of the North Sea operated by Statoil. It was discovered in 1979, in block 34/10, at a water depth of 135 meters. The initial recoverable reserve is , and the remaining recoverable reserve in 2004 is . This oil field reached peak production in... |
0,30 | 7,02 | 44,16 | 9,12 | 1,02 | 0,00 | 18,08 |
| 13 | Oseberg Sør Oseberg oil field Oseberg is an offshore oil field with a gas cap in the North Sea located northwest of the city of Bergen on the southwestern coast of Norway.... |
0,34 | 12,67 | 79,69 | 2,99 | 0,00 | 0,00 | 15,66 |
| 14 | Draugen Draugen oil field Draugen is an oil field in the Norwegian Sea with a sea depth of . It is operated by Royal Dutch Shell. The field has been developed with a concrete fixed facility and integrated topside. Stabilized oil is stored in tanks in the base of the facility... |
0,48 | 13,50 | 84,92 | 0,29 | 0,43 | 0,00 | 14,61 |
| 15 | Kristin | 0,19 | 5,65 | 35,54 | 6,24 | 1,30 | 0,00 | 14,36 |
| 16 | Ekofisk Ekofisk oil field Ekofisk is an oil field in the Norwegian sector of the North Sea about southwest of Stavanger. Discovered in 1969, it remains one of the most important oil fields in the North Sea. Production began in 1971 after the construction of a series of off-shore platforms by Phillips Petroleum Company... |
0,05 | 8,91 | 56,04 | 2,94 | 0,16 | 0,00 | 12,15 |
| 17 | Gullfaks | 0,30 | 11,25 | 70,76 | 0,39 | 0,09 | 0,00 | 11,81 |
| 18 | Tune | 0,40 | 0,64 | 4,03 | 6,36 | 0,00 | 0,00 | 7,00 |
| 19 | Vigdis | 0,30 | 5,58 | 35,10 | 0,30 | 0,21 | 0,00 | 6,28 |
| 20 | Oseberg Øst Oseberg oil field Oseberg is an offshore oil field with a gas cap in the North Sea located northwest of the city of Bergen on the southwestern coast of Norway.... |
0,34 | 5,31 | 33,40 | 0,24 | 0,00 | 0,00 | 5,55 |
| 21 | Tordis | 0,30 | 4,29 | 26,98 | 0,57 | 0,12 | 0,00 | 5,09 |
| 22 | Veslefrikk | 0,37 | 4,03 | 25,35 | 0,19 | 0,00 | 0,00 | 4,22 |
| 23 | Eldfisk | 0,05 | 2,38 | 14,97 | 0,78 | 0,05 | 0,00 | 3,26 |
| 24 | Statfjord Nord Statfjord oil field The Statfjord oil field is an enormous oil and gas field in the Norwegian sector of the North Sea operated by Statoil.It is a trans-median field crossing the Norwegian and UK North Sea Boundary with approximately 15% being in the UK Continental Shelf waters. At peak production it produced over of... |
0,30 | 2,67 | 16,79 | 0,27 | 0,09 | 0,00 | 3,11 |
| 25 | Urd | 0,25 | 2,55 | 16,04 | 0,02 | 0,00 | 0,00 | 2,57 |
| 26 | Statfjord Øst Statfjord oil field The Statfjord oil field is an enormous oil and gas field in the Norwegian sector of the North Sea operated by Statoil.It is a trans-median field crossing the Norwegian and UK North Sea Boundary with approximately 15% being in the UK Continental Shelf waters. At peak production it produced over of... |
0,30 | 1,83 | 11,51 | 0,42 | 0,15 | 0,00 | 2,54 |
| 27 | Skirne | 0,30 | 0,42 | 2,64 | 1,80 | 0,00 | 0,00 | 2,22 |
| 28 | Huldra | 0,32 | 0,29 | 1,82 | 1,34 | 0,00 | 0,00 | 1,63 |
| 29 | Vargfeltet | 0,30 | 1,35 | 8,49 | 0,00 | 0,00 | 0,00 | 1,35 |
| 30 | Njord | 0,07 | 0,58 | 3,65 | 0,65 | 0,11 | 0,00 | 1,44 |
| 31 | Sygna | 0,30 | 0,96 | 6,04 | 0,00 | 0,00 | 0,00 | 0,96 |
| 32 | Brage Brage oil field Brage is an offshore oil field in the North Sea located northwest of the city of Bergen on the western coast of Norway and east of Oseberg Field Center. The field also contains gas. The water depth at the location is... |
0,14 | 0,54 | 3,40 | 0,11 | 0,00 | 0,00 | 0,65 |
| 33 | Embla | 0,05 | 0,23 | 1,45 | 0,07 | 0,01 | 0,00 | 0,32 |
| 34 | Tor | 0,04 | 0,17 | 1,07 | 0,03 | 0,00 | 0,00 | 0,20 |
| 35 | Jotun | 0,03 | 0,18 | 1,13 | 0,00 | 0,00 | 0,00 | 0,18 |
| 36 | Heimdal | 0,20 | 0,16 | 1,01 | 0,00 | 0,00 | 0,00 | 0,16 |
| 294,48 | 1 852,28 | 1 005,04 | 40,87 | 24,24 | 1 401,41 | |||
See also
- Constitutional economicsConstitutional economicsConstitutional economics is a research program in economics and constitutionalism that has been described as extending beyond the definition of 'the economic analysis of constitutional law' in explaining the choice "of alternative sets of legal-institutional-constitutional rules that constrain the...
- Political economyPolitical economyPolitical economy originally was the term for studying production, buying, and selling, and their relations with law, custom, and government, as well as with the distribution of national income and wealth, including through the budget process. Political economy originated in moral philosophy...
- Petroleum exploration in the ArcticPetroleum exploration in the ArcticThe exploration of the Arctic for petroleum is more technically and physically challenging than for any other environment. However, with increases in technology and continuing high oil prices the region is now receiving the interest of the petroleum industry....
- Natural resources of the ArcticNatural resources of the ArcticNatural resources of the Arctic are the mineral and animal resources within the Arctic region that provide or have potential to provide utility or economic benefit to humans...