Investment and cost

Oil and gas production requires heavy, long-term investments. In the past 50 years, oil companies (licensees) have invested heavily in exploring, developing and operating Danish fields.

The present and future levels of investment in exploration and operations affect potential income for many years ahead.

During the period 1963—2010, a total of DKK 280 billion was invested (2010 prices). Field developments and investments in new fields account for more than half of the licensees’ total costs (see the breakdown of licensee costs in the figure below).

The costs of exploration, field developments and operations (including administration and transportation) accounted for 12, 54 and 34 per cent, respectively, of total costs.