Annual report for Nordsøfonden and Nordsøenheden 2014 has been published


Like other oil companies, Nordsøfonden has been challenged by falling oil prices in 2014. However, 7th Licencing Round shows a continued interest in exploration on Danish Continental Shelf.

Nordsøfonden’s result for 2014 was a deficit of more than DKK 600 million after impairment of fixed assets by 2.5 billion DKK. Tax and dividend paid to the Danish State amounted to more than 5 billion DKK.

In July 2014, the new DUC platform at the Tyra Southeast field was installed and hooked-up to the existing platform. The project has been conducted as planned, and the first oil was produced in late March 2015.

Wintershall’s and Nordsøfonden’s production plan for the Ravn field was approved by the Danish Energy Agency in November 2014. Ravn Phase 1 will be developed via German and Dutch infrastructure and comprises establishment of a new platform and drilling of two production wells. The platform is planned to be installed in the summer of 2015, and oil production is expected to commence in late 2015.

Following the Minister for Business and Growth’s approval, Nordsøfonden joined the Maja license (9/95) in late 2014 with a 20 % share. Nordsøfonden participates in the ongoing exploration well Xana-1X. Results from the well are not yet available.

Nordsøfonden’s share of the DUC production amounted to 10.2 million barrels of oil, and the share of gas production was 731 million m3 gas resulting in a 7.4 billion DKK turnover in 2014.

During 2014, Nordsøfonden paid 3.6 billion DKK in corporate and hydrocarbon taxes and has transferred 1.6 billion DKK as dividend to the Danish State. This results in a total cash flow of 5.2 billion DKK to the State.

The drastic fall in oil prices in the second half of 2014 has led to an impairment of assets for many companies across the business. The management of Nordsøfonden has written down the fixed assets with 2.5 billion DKK, which has resulted in a negative net effect on profit of 900 million DKK.

Nordsøfonden’s result net after tax was -620 million DKK.

2014 also saw the launch of the 7th Licencing Round. The Danish Energy Agency has received 25 applications from 15 oil companies. This is the highest number of applications ever. Nordsøfonden stands to be partner in all licenses granted.

In light of the above and an expected high level of activity in the existing licenses, especially in DUC, it looks like a busy 2015 for Nordsøfonden.

Nordsøenheden that administers Nordsøfonden was in 2014 transformed into an independent state company with its own board of directors. The company is fully owned by the Ministry of Business and Growth.


Read the Annual Report for Nordsøfonden and Nordsøenheden 2014