Oil for NOK 190 billion

This article originates from the news archive of Det norske.

26. April 2016

Alvheim has delivered its shipment number 400. Alvheim has been a floating money-maker since June 2008, yielding gross revenues in the amount of approximately NOK 190 billion. This amounts to far more than anyone could envision at the time of start-up of production. Alvheim proves that black oil has a golden lining indeed.
The Navion Scandia from Teekay has retrieved another cargo from the Alvheim field. Both the company Det norske as well as the Alvheim team have just cause to celebrate another milestone for a fantastic field.

The Navion Scandia has the honour of delivering shipment number 400 from the Alvheim field. Svein J. Liknes, Vice President Alvheim Asset, comments:

“Alvheim has been a fairy tale since the onset, and it still is. It is the money-maker in the company, enabling us to always move forward to create value on the Norwegian shelf. Alvheim is a value stream – from well to bank.”

Seven litres per person
With cargo number 400, more than 320 million barrels have been shipped from Alvheim. In addition, about 20 million oil equivalents of gas have been produced and exported during the same period. The oil production corresponds to approximately 51 billion litres, equalling seven litres of oil per person in the world. During the period the oil price has fluctuated between less than USD 38 per barrel to in excess of USD 140 per barrel. On average, oil from Alvheim has been paid for at between USD 93 and 94 per barrel. The dollar rate has fluctuated between NOK 5.60 and 8.70 against the NOK during the same period. Gross revenues are close to USD 30 billion – realized at approximately NOK 190 billion.

The hose must be hooked up to the tanker twice for every time the oil is being offloaded. This operation has been carried out about 850 times – without personal injuries or HSE incidents. Neither have the operations impacted production adversely. The oil has been sold to 16 customers in at least nine different countries, including inter alia the US, Japan and South Korea. The oil from Alvheim has been transported across distances equalling about 19 trips around the equator.

In 2015, Alvheim was awarded the Field Operator of the Year Gullkronen award by Rystad Energy.

The Gullkronen award: Harris Utne, Rystad Energy, Operations Manager Svein Jakob Liknes, SVP Operations Geir Solli, OIM Leif Aaberge and Per Inge Remmen, First Geo. Awarded the 2015 Field Operator of the Year Gullkronen award.

Svein Liknes says that he is proud of the work that is being done.

“Our performance has always been good, and we have solved technical challenges on an ongoing basis. At the same time, we have always worked to improve even more. I would like to stress the importance of the teamwork that has characterized the operation of Alvheim since the onset and the attention we have all been paying to reaching our stated goals.”

He praises the organization, from subsea to sales, who are all endeavouring to deliver the right amount at the right quality, and at the right time. In the market, Alvheim is reputed to be a very reliable supplier, and this truly pays off in a tough oil market. As to export, he also emphasizes the cooperation with the transporter Teekay, who has shipped all the cargo from the Alvheim field in a very reliable and responsible manner.

Alvheim’s success illustrated

Total revenues from Alvheim increase every day even though production is being gradually reduced, and considering the current low oil prices. The green line illustrates accumulated revenues in NOK billion; the blue line the development of the oil price – the barrels represent annual production.