Companies expect to invest record levels in offshore Norwegian oil and gas extraction and pipeline transportation in 2024, due to expected increased spending on exploration and field development, Statistics Norway said on Tuesday.
Commenting on its second-quarter investment estimates survey, Statistics Norway said investment in oil and gas extraction and pipeline transportation in 2024 was estimated at $23.6 billion (NOK 247 billion), “which is the highest nominal estimate historically since these statistics have been compiled.”
The new record investment estimate is 1.3 percent higher than the first-quarter survey in February, which forecast investment of $23.3 billion (244 billion kroner) in 2024.
Statistics Norway expects investment to remain strong in 2025, although not as strong as this year, as there will be fewer new developments next year.
Total investment in oil and gas activities, including pipeline transportation, is estimated at $20.6 billion (SEK 216 billion) in 2025, up 5.2 percent from the previous quarter’s estimate.
Oil and gas companies plan to increase exploration activity and spending off Norway’s coast this year as the country, Western Europe’s largest oil and gas producer, aims to maintain production and increase exports to other European countries.
In its annual report earlier this year, the Norwegian Marine Directorate said most exploration activity is currently focused on areas around existing infrastructure, where discoveries can be quickly tied up and value created while the fields are still operating.
While this is important to maintain production levels in the short and medium term, the agency said it “expects companies to actively explore more advanced areas”.
The report noted that last year’s robust exploration and production activity is expected to continue through 2024.
Exploration activity is set to pick up this year, with operators planning 40 to 50 exploration wells, up from the 34 drilled last year, officials said.
Article by Michael Kahn of Oilprice.com
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