Norway to Raise Oil Reserch Budget by $16.7m
The Norwegian government is set to increase its funding of petroleum research by Nkr113 million ($16.7 million), according to the 2005 draft budget, unveiled in Oslo today.
Of the Nkr113 million earmarked for research and development, Nkr88 million will come from the state budget and Nkr28 million from return on the Fund for research and innovation.
In total, Norway is prepared to invest about Nkr250 million, a financial commitment that Energy Minister Thorhild Widvey has welcomed.
"The government will increase the allocated funds to petroleum research by over 60% in 2005, to ensure that the petroleum sector's role as a substantial contributor to the country's welfare and industrial development," Widvey said
"We're work actively to increase petroleum production on the Norwegian continental shelf, through stimulating higher exploration activity and increased oil recovery. A commitment to research and development within the petroleum sector is a vital element of this," she added.
The increase will primarily strengthen the research programme Petromaks in the Research Council of Norway. Demo 2000 will also be strengthened.
However, Oslo will also put forward a plan to spend Nkr24 billion ($3.57 billion) more of the country's oil revenues in 2005, it was reported this morning.
The NTB news agency said the minority government, which needs parliamentary backing for its draft budget, would propose to spend Nkr66.4 billion in total of the state petroleum fund.
In its draft budget, the government said that the country's oil output is forecast to edge up to 3.3 million barrels per day next year from 3.2 million in 2004 and then begin declining. The forecast includes natural gas liquids.
"The estimated production in 2005 is 3.3 million barrels per day," the Oil & Energy Ministry said in a statement accompanying the budget.
"Oil production is expected to remain at this level over the next years, but will then gradually decline," it said.
The Ministry forecast production of crude and natural gas liquids would fall to 170 million cubic metres in 2008 from an estimated 189 MMcm in 2005.
The 2008 figure would be equal to 2.9 million bpd.
Production of natural gas in 2005 is expected to rise to 82 billion cubic metres from 75 Bcm, and is expected to climb to 118 Bcm in 2008, the Ministry said.
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