WorldMoney & Business

Norway’s Cash Flow From Offshore Fields Crashes Due to Low Natural Gas Prices

By Tsvetana Paraskova of

Norway saw cash flow from its stakes in oil and gas fields nearly halve in the first quarter of 2024 compared to the same period of 2023, as natural gas prices slumped and gas consumption in Europe was below expectations, said state company Petoro, which manages field holdings of Western Europe’s top oil and gas producer.

In the first quarter of the year, Petoro delivered a cash flow of $5.4 billion (60 billion Norwegian crowns) from the State’s Direct Financial Interest (SDFI) to Norway. The cash flow was $5.14 billion (57 billion crowns) lower than in the first quarter of 2023.

After a couple of years of abnormally high natural gas prices, the achieved gas price in the first quarter was 51% lower than in the same quarter last year, Petoro said on Thursday.

“The Continent experienced a relatively mild winter, which meant that gas consumption was lower than expected. This is an important factor that has affected price and revenues,” Petoro CEO Kristin Kragseth said, adding “The cash flow from our production is still high from a historical perspective.”

Production from the state portfolio in Norway’s offshore fields hit in the first quarter the highest level since the first quarter of 2018, Petoro said.

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