Valuation of petroleum resources in Norway

ended

This project aims at compiling and harmonising as much as possible the experimental estimates of Norwegian petroleum resources as a non-financial asset, in line with the international standards, such as the System of National Accounts 2008 (2008 SNA) and the System of Environmental-Economic Accounting 2012 – Central Framework (SEEA 2012), as well as with the relevant recommendations given in the Guidance Note (GN) by Task Force teams working for SNA updating (e.g., WS.10: Guidance Note on Valuation of mineral and energy resources). To this end, several specific objectives of the project are planned to be fulfilled. First, the project will investigate the feasibility of converting the national petroleum resource classification into one based on the United Nations Framework Classification for Fossil Energy and Mineral Reserves and Resources 2009 (UNFC-2009), as suggested by both the SEEA 2012 and the GN (WS.10). Second, the project will explore the possibility of compiling the estimates by following a bottom-up approach, i.e., by means of disaggregated data starting at the level of oil fields on the Norwegian continental shelf. Third, the project intends to harmonise to the greatest extent the choice of essential assumptions and key parameters for valuing petroleum resources when applying the Net Present Value (NPV) approach. The project can serve as an early-implementation exercise ahead of the final approval of the updated SNA in 2025. The various outcomes, including knowledges gained and lessons learned, of the project can be well utilised to facilitate preparing for the adoption of the envisaged new SNA as international standards for countries worldwide, and of the foreseen subsequently revised European System of Accounts (ESA) as regional standards for EU member states and other European countries.