OSLO (Reuters) -Investment in Norwegian oil and gas projects will rise to a record this year and may increase further in 2025 as inflation pushes up the costs of development, a national statistics office (SSB) survey showed on Thursday.
Norway in recent years sanctioned a raft of new fields as companies took advantage of pandemic-era tax breaks to fast-track projects, part of a national strategy to extend oil and gas production for decades to come.
The country’s biggest business sector forecast all-time-high investment of 256.1 billion crowns ($22.9 billion) in 2024, broadly in line with its 257.0 billion-crown estimate made in August and exceeding a record of 224 billion crowns from 2014.
Last year investment stood at 215 billion crowns, according to SSB.
Preliminary estimates for oil and gas investments in 2025 stood at 252.6 billion crowns, compared to an August estimate of 240 billion crowns, the survey showed.
The preliminary number for 2025 was 20 billion crowns higher than the corresponding forecast made one year ago for 2024, SSB said, signalling that next year could see another record, as estimates normally rise when companies firm up spending plans.
Oil companies had reported significantly higher expected costs for “some development projects” in 2025, SSB said without giving details on which fields were affected.
Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!
By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.
“These increased costs will probably not contribute much to expanded production capacity more than initially planned,” the statistics agency said.
The Nordic country’s petroleum production is fiercely opposed by environmentalists and others concerned that carbon emissions from burning oil and gas contributes to climate change.
Norway backs the Paris climate accords and the global goal to transition away from fossil fuels, but also says the world will need access to oil and gas for many years still.
($1 = 11.1654 Norwegian crowns)
(Reporting by Terje Solsvik; editing by Anna Ringstrom and Sharon Singleton)
