Norwegian government’s oil revenues soar

Kjell Pedersen. Photo: Petoro.

The Norwegian government’s income from direct investment in the country’s offshore oil and gas fields rose 27 percent in the fourth quarter, as higher natural gas prices and production levels countered a sharp drop in crude prices, Petoro AS said March 2.

Government-owned Petoro, which manages investments but does not operate fields, said the government’s net income for the quarter amounted to $5.3 billion.

For all of 2008 it set a new record of $22.7 billion, a 38 percent increase on a year earlier due to record high crude prices through the first half of last year.

“A cash flow of 155 billion kroner to our owner, the Norwegian state, is an almost inconceivable amount. It primarily reflects high prices, of course, but also good underlying operating results,” said Petoro Chief Executive Kjell Pedersen.

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