Since its establishment in 2001, Petoro has served as the licensee for the state’s participating interests in production licences, fields, pipelines and land-based facilities. Petoro is charged with managing the SDFI portfolio on the basis of sound business principles. As of the end of 2025, the portfolio consisted of 187 production licences, four more than at the beginning of the year. Twelve production licences were relinquished in 2025. In January 2025, the Ministry of Energy completed its awards in pre-defined areas (APA 2024), where an additional 13 production licences were awarded to the SDFI. One licence was also carved out of an existing licence, as well as a net increase on two additional licences in connection with a swap agreement with Equinor.

Petoro’s mandate was updated following the increased state ownership in key gas infrastructure in 2024. The company’s updated by-laws establish that Petoro, in its management of this infrastructure, shall emphasise socio-economic profitability and sound management of petroleum resources. In its commercial assessments concerning this infrastructure, the company shall therefore take into account efficient operations and operating costs, and the lowest possible user costs over time, given a weighting toward regularity and flexibility, in addition to reasonable return on investments in light of the risk. In decisions associated with this infrastructure, the company shall not assign particular emphasis to the impact on the value of the state’s participating interests in production licences.

The annual accounts are presented in accordance with the Provisions on Financial Management in Central Government, circular R-115 from the Ministry of Finance, and requirements in the instructions on financial management of the SDFI in Petoro, with the exceptions granted for the SDFI. The board hereby confirms that the annual accounts, which comprise the appropriation and capital accounts prepared on a cash basis, provide a true and fair picture in accordance with the cash basis. The general ledger accounts report presents accounting figures for the SDFI as reported to the government accounts in accordance with the standard chart of accounts for state-owned undertakings.

The board confirms that the company accounts have been prepared in accordance with the Accounting Act and Norwegian generally-accepted accounting principles (NGAAP), and provide a true and fair picture of the SDFI’s assets, obligations and financial results at 31 December 2025.

In accordance with the supplemental Assignment Letter dated 22 December 2025, the SDFI’s appropriation for investments¹ totalled NOK 35.3 billion. An additional appropriation was also issued as a final settlement to purchase ownership interests² in key gas infrastructure totalling NOK 1.9 billion. The appropriation for operating income³ totalled NOK 229.1 billion. The appropriation for interest on the state’s capital⁴ totalled NOK 5.2 billion. Operating income in accordance with the cash basis is affected first and foremost by the price of oil and gas and the volume of the SDFI’s production sold. Equinor handles marketing and sale of SDFI’s products through the Marketing and Sale Instructions issued by the Ministry of Trade, Industry and Fisheries.

The general ledger accounts report on the cash basis shows net reported revenues totalling NOK 324.2 billion in 2025, compared with NOK 311.8 billion in 2024, excluding financial income. The revenue was significantly affected by high gas prices in 2025 and increased tariff revenues from the gas infrastructure. Expenses reported in the appropriation accounts for 2025 comprise payments of NOK 28.7 billion as investment and NOK 47.3 billion as operating expenses. Payments in 2024 amounted to NOK 48.5 billion related to investments and NOK 43.5 billion related to operations. Payments to operations were primarily related to the operation of fields and facilities, processing and transport costs, as well as exploration and field development expenses. This is in addition to payments of financial expenses. Depreciation of fields and facilities amounted to NOK 38.3 billion in 2025, compared with NOK 29.6 billion the previous year.

The SDFI accounts include a number of significant estimates which are subject to uncertainties and rely on discretionary assessments. These e.g. include capitalised exploration costs, estimates of reserves as the basis for depreciation, decommissioning expenses based on estimates for costs to be incurred far into the future, and assessment of impairment charges on tangible fixed assets.

Net cash flow to the state from the SDFI at year-end amounted to NOK 243 billion, 23 billion higher than the previous year. The increase in cash flow was primarily caused by higher gas prices and higher tariff revenues as a result of increased ownership in key gas infrastructure. The increase was partly offset by reduced gas volumes, lower oil prices, and higher operating costs. Overall, cash flow in 2025 was the third-highest ever recorded.

Total production reached 1,049 thousand barrels of oil equivalent per day (kboed), a reduction of 15 kboed compared with the previous year.

Gas production amounted to 108 million standard cubic metres (mill. scm) per day, a reduction of four per cent compared with the year before. This reduction was mainly caused by a maintenance shutdown at Hammerfest LNG, as well as lower production from Troll due to capacity issues at Kollsnes. The average realised gas price was NOK 4.86, compared with NOK 4.50 per scm the year before. Prices were thus higher than in 2024, driven by a tight European gas market, characterised by high LNG competition, robust demand and reduced supplies of Russian pipeline gas.

Liquids production amounted to 366 kboed, an increase of 12 kboed compared with the previous year. This increase was primarily caused by Johan Castberg starting up, as well as higher production from Tyrving and Breidablikk. This was partly offset by natural decline in mature fields and a reduced ownership interest in Heidrun following the ownership swap with Equinor. The average realised oil price was USD 69, compared with USD 82 per barrel the year before. Measured in Norwegian kroner (NOK), the oil price was 720, compared with NOK 871 per barrel the previous year. This drop in price reflects high global production, tapering growth in demand and increased oil inventories, which overall have led to an oil market in surplus and put pressure on prices.

Investments came to NOK 29 billion, NOK 20 billion lower than the previous year. This reduction was mainly due to the effect of acquiring key gas infrastructure totalling NOK 15 billion, as well as a capital injection of NOK 8 billion in an affiliated company in 2024. Excluding the effects related to the acquisition and the investment in the affiliated company, investments amounted to just over NOK 3 billion higher than the year before. The increase was caused by a higher activity level for Snøhvit Future, and Troll phase 3 stage 2. A larger ownership interest in Gassled also contributed to higher investments in gas infrastructure.

Total operating expenses amounted to NOK 88 billion, NOK 16 billion higher than the year before. This increase was caused by increased production expenses, expenses to purchase third-party gas, as well as depreciation and impairment.

Production costs amounted to NOK 31 billion, 7 billion higher than the previous year. The increase was mainly caused by increased ownership in key gas infrastructure. Excluding gas infrastructure, production expenses were on par with the same period the year before.

Costs for purchasing third-party gas amounted to NOK 7 billion, NOK 2 billion higher than the previous year. This increase was primarily caused by higher gas prices in combination with increased volumes.

Transport costs amounted to NOK 7 billion, NOK 4 billion lower than the year before. The primary reason for this is that the acquisition of key infrastructure eliminated a significant share of transport costs for fields in the SDFI portfolio.

Total depreciation amounted to NOK 40 billion, an increase of NOK 8 billion compared with the previous year. This increase was caused by higher depreciation for Gassled following the acquisition, Tyrihans following the swap with Equinor, as well as Johan Castberg and Tyrving after first oil on these fields.

The 2025 accounts recognised an impairment of NOK 0.5 billion on Martin Linge, against a reversal of 2 billion in previous impairment in 2024.

Total exploration expenses during the period came to just under NOK 2.4 billion, of which a net of NOK 0.8 billion has been recognised as capitalised exploration costs. Petoro was a participant in 11 exploration wells in 2025. These resulted in six discoveries. Drivis (PL532) near Johan Castberg, Smørbukk Midt (PL094) in the Åsgard area and Omega Alpha (PL1249) in the North Sea are considered to be potential commercial discoveries. Two are characterised as technical/non-commercial and one is still under evaluation. Dry or presumed non-commercial wells have been expensed.

Net income came to NOK 247 billion, NOK 15 billion higher than the previous year. This increase was mainly caused by higher operating revenue as a result of high gas prices, as well as higher tariff revenues as a result of increased ownership in key gas infrastructure. Gains on NOK 23 billion were also recorded for Heidrun in the 1st quarter in connection with a swap agreement with Equinor. The increase was partly offset by lower oil revenue as a result of reduced prices, increased costs and depreciation.

The book value of assets at 31 December 2025 was NOK 306 billion. The assets mainly consist of fixed assets related to field installations, pipelines and onshore plants, as well as current debtors. Equity at year-end came to NOK 203 billion, which is an increase of NOK 4 billion compared with the year before. The increase was caused by the transfer to the state being 4 billion lower than the annual result for accounting purposes. Overall debt amounted to NOK 103 billion, while NOK 76 billion of this was related to estimated future removal obligations. Removal obligations increased by NOK 4.5 billion compared with 2024, mainly due to higher estimates from operators and the interest rate effect of the time of removal moving closer by one year.

The portfolio’s estimated remaining reserves totalled 3,951 million boe at the end of the year, down by 178 million boe compared with the end of 2024. Reserve growth amounted to 205 million boe, mainly from Troll, Oseberg and Snøhvit. With a production of 383 million boe, this yielded a reserve replacement rate of 54 per cent, compared with 11 per cent in 2024 and 16 per cent in 2023.

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[1] Kap/post 2440.30
[2] Kap/post 2440.31
[3] Kap/post 5440.24
[4] Kap/post 5440.80

The Office of the Auditor General (OAG) is the external auditor, and approves the annual accounts for the SDFI. Upon completing its annual audit, the OAG issues an auditor’s report which summarises the conclusion of its audit work. The result of the audit will be reported by 1 May 2026.

The board has appointed PwC to conduct a financial audit of the SDFI accounts as part of Petoro’s internal audit process. As internal auditor, PwC submits its audit report to the Petoro AS board regarding the annual accounts pursuant to the accounting principles on a cash basis and in accordance with international auditing standards.