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Danish Energy Agency lowers 2012 oil production forecast

The Danish Energy Agency has lowered its forecast of Danish oil production with 2 percent in 2012 and raised sales gas production by 9 percent, reveals an update of the DEA’s five-year forecast of product of the two energy sources.

The Danish Energy Agency (DEA) has updated its five-year forecast for oil and sales gas production, investments and costs for exploration, operation and oil and gas transportation compared to the annual report from May 2012. This involves a lowering of expectations toward oil production and an increase for sales gas.  

“For 2012, oil production is expected to total 11.6 million m³, equal to about 199,000 barrels of oil per day. This is a 9 percent decline on 2011. Compared to the annual report from May the expected production for 2012 is written down 0.2 million m3 corresponding with 2 percent. The downward adjustment is mainly caused by reduced expectations to the production from the South Arne Field,” writes the DEA in a press release.

The DEA expects future production to decline further, but a 2016 increase in production is expected mainly caused by production from Hejre Field.

“For the period 2012 to 2016 mainly minor revisions have been made compared to the annual report, and total estimated production for this period has been written down 3 percent compared with the annual report,” writes the DEA.

Sales gas production is expected to total 4.7 billion Nm3 in 2012. In comparison with 2011, this is a 16 percent decline. Compared to the annual report the expected production of sales gas for 2012 is written up 0.4 billion Nm3 corresponding with 9 percent. The upward adjustment is mainly caused by greater demand than expected.

Lower investments

In the forecast update, total investments in development projects for 2012 are estimated at DKK 6.3 billion. Compared to the annual report the estimate has been reduced with DKK 0.2 billion.

“The investment estimate for the forecast period totals DKK 45.5 billion. The estimate has been written up DKK 1.8 billion compared to the annual report because of revisions and further developments,” writes the DEA.

Investments in the North Sea of USD 7.3 billion over the next five years 

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