Press release

No. 22/99
Date: 26.03.99

Norway cuts the oil production by an additional 100.000 barrels per day

Due to the effects of the low oil price on the Norwegian economy and on the management of the Norwegian petroleum resources, the Government today decided to reduce the Norwegian oil production with 200.000 barrels per day on average for the rest of 1999.

This means that the production is lowered with an additional 100.000 barrels per day on average when compared with the present cut in the oil production level. The measure will take effect on 1 April 1999 and last until 31 December 1999.

The reduction will be based on the Ministry's oil production prognosis used in connection with the Revised National Budget for 1999. According to this prognosis, the oil production in the last 9 months of 1999 is estimated to be approximately 3,2 million barrels per day on average. The estimate for average annual production in 1999 is close to 3 million barrels per day, reduction included.

To achieve the cuts, the production from each field has been cut with the same percentage, i.e. in accordance with the principle of equal treatment. However, the fields Statfjord and Murchison will both be exempted from the measure, given that they extend across the border between the Norwegian and British continental shelf. In addition, Frøy will be exempted due to the considerable risk of being unable to regain the resources which would be held back by a cut in the production. Gas and gas condensate fields fall outside the scope of the measure.

The measure would be considered lifted if OPEC should fail to comply with the cuts they announced on 23 March 1999.

Contact: Sissel Edvardsen, +47 22 24 61 09