Note 1 - Beerenberg

Management report
Message from the CEO
Macroeconomic developments 2012 was an uplifting
year for the oil services industry – a sector where the level
of activity is affected by the market’s expectations towards
future oil prices. The year saw a steady improvement in the
capital markets along with record high oil prices averaging
USD 112 per barrel (Brent), cf. EIA.
Leading analysts (Nordea) have forecast an average oil price
of USD 108 per barrel in 2013. This level would be sustainable
for the industry and would generate increased activity and
investment. OPEC production targets, political development
in the Middle East, the further handling of the European
debt crisis and new investment in unconventional oil and gas
exploitation are four crucial issues that in this context would
have a decisive effect on supply, demand and prices.
The domestic market
The year 2020 was previously considered a significant crossroads
in relation to the level of activity on the Norwegian
Continental Shelf (NCS). This crossroads is about to lose its
significance in light of the finds made on the NCS in recent
years. Output from new fields put into production after
2011 is expected to reach 2 million barrels of oil equivalents
per day by 2019. The Johan Sverdrup field is expected to
begin production in the same year (1.9 billion exploitable
oil equivalents). Also exciting is the news that Statoil and
Rosneft have agreed to conduct a joint investigation and test
drilling on both sides of the maritime boundary between
Norway and Russia.
The NCS is currently the world’s largest offshore market
measured by the level of investment. Leading analysts
predict that investment and operating expenditure (CAPEX
and OPEX) combined will exceed NOK 318 billion in 2013,
compared with the NOK 283 billion seen in 2012. Total
investment in 2017 has been estimated at NOK 420 billion by
leading analysts. (Rystad Energy)
A steady course Beerenberg saw a slight increase in
the level of activity in 2012 compared with the previous
year. Operating profits and margins rose significantly, thus
sustaining the run of consecutive increases over the last four
years (since 2008).
Brent Crude - Daily Closing in 12 previous months
Production by by operator
$/BBL
130
2 500
Thousand boe/d
Majors Statoil Others
125
120
2 000
115
110
1 500
105
100
1 000
95
90
500
85
80
Feb 12 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 13 Feb
-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Fields with start-up after 2012
Source: Rystad Energy UCube
5