Activities and results from the year
Reference is made to the “Letter of Assignment to Petoro AS for 2025”, and to the business plan for Petoro AS. The targets set in the Assignment Letter and Petoro’s performance in relation to these are presented below.
Photo: Equinor
Safeguarding the state's direct participating interests
Petoro shall be an active partner that helps maximise the value of the SDFI portfolio through comprehensive assessments. The work shall be focused on areas and tasks where the company, based on the portfolio and in interaction with other players on the Norwegian shelf, can provide a particular contribution toward increased value creation, considering the state’s overall financial interests.
Petoro shall prepare and report on operational targets and relevant management parameters to safeguard the state's direct participating interests, thus reinforcing the state's goal of achieving the highest possible value and revenue from the SDFI.
Serious incident frequency
The target was a serious incident frequency of less than 0.5
Thirteen serious incidents yields a frequency of 0.4 in 2025, a substantial improvement from 0.59 in 2024. Most incidents were linked to falling objects and personal injuries. Petoro has been clear in its expectations as regards HSE culture and leadership, and has conducted multiple management visits aimed at risk assessments and lessons learned across the portfolio.
Oil production
The target was 302 thousand barrels oil per day (kbd) in 2025.
SDFI’s oil production amounted to 318.5 kbd in 2025, exceeding the target by 17 kbd. This result was primarily caused by high regularity and sound production management on Johan Sverdrup, in addition to higher well potential and better drilling progress on Breidablikk. This positive development was partly offset by the delayed start-up on Johan Castberg.
Gas sales
The target was 38.5 billion cubic metres in 2025.
Gas sales amounted to 39.4 billion cubic metres, exceeding the target by 0.9 billion cubic metres. The increased sales were the result of early completion of subsea compression on Ormen Lange and increased gas export from Åsgard.
Project progress
The target for 2025 was passing at least six of eleven decision milestones, distributed between six DG1 decisions, two concept choices and three DG3 decisions.
Six milestones were reached in 2025, and the objective was thus reached. Johan Castberg Cluster 1, Troll West IGR North (TWIN), Linnorm, Adriana, Johan Sverdrup phase 3 and Sture water treatment all passed all their respective milestones. However, the remaining projects were postponed as a result of inadequate maturity or weak profitability.
Maximising production
The goal was to complete and implement a digital tool to quantify the potential value creation from oil-producing fields, based on methods developed in 2024, and to ensure that the tool was operative in at least three licences. Furthermore, a method should be developed to calculate a complexity index for gas-dominant fields.
This target has been reached. The reservoir complexity tool has been established in SLB’s Delfi cloud solution, which was tested on multiple fields and used in three licences. Gas fields have been benchmarked using a dedicated tool. Results from both oil and gas benchmarks have been integrated in an internal database and used in Petoro’s further analytics and licence follow-up.
Drilling progress
The target was to increase the number of completed wells per rig from 1.5 to 1.7 compared with 2024.
This target has been reached. The result was 2.2 wells per rig, the equivalent of 22 completed wells overall. This good result was caused by a considerable improvement in how drilling plans are administered on the Gullfaks and Oseberg rigs, which are operated by Equinor. These two fields delivered 17 of the 22 wells. On these fields, Petoro has observed improved prioritisation of well deliveries with better drilling target and slot choices, in addition to reduced complexity. This is in line with the approach Petoro has been recommending for several years.
Management of the Troll area
The target was to maximise value creation from Troll by maturing Troll's own projects, area discoveries, assessments of gas export infrastructure and third-party needs.
These activities have been carried out, and this target has been reached. The DG2 decision for TWIN was made in line with Petoro’s position. Petoro’s view on compression solutions and gas from Troll Øst Nord (TEN) is established and has been provided as input in the licence. As regards area discoveries, preferred tie-in-solutions have been defined, and agreement has been reached on work programmes leading up to a concept choice in May 2026.
Gas infrastructure studies conducted by Gassco and Visund now constitute a basis for decision-making which is consistent with Troll’s needs. Troll has submitted a term-sheet for Ringvei Vest which safeguards the field’s capacity needs.
Measures to reduce CO₂
The target was to establish a solid decision-making basis for electrifying Halten, Tampen and Grane and pass DG2 decisions for six projects.
This target was not reached. Substantial growth in costs, under-performing business cases and inadequate maturity led to the projects being postponed, revised and finally suspended. Five of six projects were terminated in 2025. GraneBalder Energy was continued and will be further matured in 2026.
Administrating the state's ownership in key gas infrastructure
The increased state ownership in key gas infrastructure, cf. description in Prop. 27 S (2024–2025) from the Ministry of Trade, Industry and Fisheries, was assigned to the SDFI scheme, with Petoro as administrator and licensee. Reference is also made to the Royal Decree of 20 December 2024, which stipulates that Petoro shall separate its administration of the state’s ownership of key gas infrastructure from the state’s participating interests in other petroleum activities, thus ensuring that no decisions place particular emphasis on the value of the state’s participating interests in production licences.
Petoro shall prepare and report on operational targets and relevant management parameters for administrating the state's ownership in key gas infrastructure.
In 2025, Petoro established a dedicated department to follow up the gas infrastructure, manned in line with the functional requirements. Governing documents have been drawn up to ensure good internal interfaces and how to handle conflicts of interest. Gas infrastructure is incorporated in Petoro’s strategy, and agreements have been established with Gassco to govern both operatorship and the architect function.
Petoro has spent 2025 establishing good relationships with relevant authorities and maintaining systematic dialogue with shippers to clarify roles, responsibilities and expectations.
Following up Equinor's marketing and sale of the state's petroleum
Petoro shall follow up to ensure that Equinor conducts the marketing and sale of the state’s petroleum alongside its own in accordance with the marketing and sale instructions issued to Equinor ASA. This includes contributing to equitable distribution of revenues and costs between the state and Equinor. Petoro shall be aware of potential conflicts of interest and issues of significant financial significance.
Petoro shall prepare operational targets and relevant management parameters to follow up that Equinor ASA carries out its pursuant to the Marketing and Sale Instructions
2025 has seen Petoro particularly focus on potential divergent interests, as well as issues of significant financial importance. The company has prioritised issues within the marketing and sale of both oil and gas. Petoro has also focused on the extent to which the deposit models fulfil the goals in the Marketing and Sale Instructions.
Petoro is concerned with ensuring that the products are marketed and sold in a manner which ensures that the highest possible price is achieved, in addition to ensuring that the portfolio’s flexibility is used to achieve the highest possible value creation. Optimal development, regularity and capacity utilisation in production plants and infrastructure are key pillars in this effort.
Selected verifications have been conducted to ensure that the SDFI receives its rightful share of sales-related costs and revenues. Petoro has maintained a dialogue with the Ministry of Trade, Industry and Fisheries throughout the year on areas in the Instructions. The company has also had an extensive dialogue with Equinor, including follow-up of shared goals for costs and value creation.
Financial management
Petoro shall
- ensure sound financial management and control of SDFI pursuant to the Regulations on Financial Management in Central Government and instructions to Petoro AS for financial management of the SDFI
- prepare and follow up budgets and forecasts, conduct accountancy and perform periodic variance analyses and reporting on the SDFI’s financial standing and development.
In 2025, Petoro has ensured sound financial management and control of the SDFI in line with the Regulations on Financial Management in Central Government and instructions for financial management of the SDFI.
The company has furthermore prepared and followed up budgets and forecasts, been responsible for accountancy through an external accountant and performed periodic variance analyses and reporting on the SDFI’s financial standing and development in accordance with deadlines specified in the Assignment Letter.
Petoro also received a clean auditor’s report for 2024 for the SDFI from the Office of the Auditor General.
Efficient operations
Petoro shall work systematically to utilise its allocated resources in an efficient manner.
The company shall prepare operational targets and relevant management parameters for sustainable and efficient achievement of the state's goals as owner
Petoro aims to carry out its activities as efficiently as possible.
The company has organised its primary tasks such that new ownership interests the company receives for stewardship are handled with a limited increase in the use of resources. Petoro has organised its activities with limited basic staffing. About 35 per cent of the company’s cost consumption is linked to the purchase of external goods and services, and the largest areas are ICT, accounting and auditing services, as well as procurement of project-oriented expertise and studies within the company’s strategic priorities. Petoro is concerned with facilitating a high level of competition in its tender processes, thus allowing the company to achieve the best terms available on the market, as well as close cost monitoring in existing agreements.
The company has a framework for efficiency measures and improvement. This framework is an integrated part of the company’s governance. Over the course of the year, the company has implemented 54 different improvement and efficiency measures. The effect of these measures has been estimated at one-time savings of NOK 0.5 million and annual savings of NOK 0.8 million, as well as about 2,500 saved hours worked. The measures have also yielded improved quality and fewer mistakes, increased availability of information and more efficient work processes.
As part of the company’s efficiency and improvement efforts, and in line with the company’s strategy, Petoro works to exploit the opportunities inherent in using digital tools. The objective is to improve the quality and accessibility of information, reduce time spent on routine tasks and manual operations, streamline reporting and supervisory tasks, as well as to improve the company’s impact through better insight, analyses and decision documentation.