Norway’s O&G Investments To Be $24.68 Billion in 2025

Investments in Norway’s oil and gas sector is expected to increase by 4% to $24.68 billion in 2025 and exploration activity is also expected to increase next year, the Offshore Norge industry Association said.

At the same time last year, the Association estimated a decline in investments in the same period. The increased investment activity comes from an increased scope of some ongoing development projects, in combination with increased infill activity and production drilling on fields in operation.

A high level of activity is expected on the Norwegian continental shelf next year as well. This secures jobs in large and small supplier companies throughout the country and provides the basis for significant income for the community, Chief Economist Marius Menth Andersen said.  

Exploration activity is also expected to increase next year as Offshore Norway estimates that around 45 exploration wells will be started on the Norwegian shelf in 2025.

Andersen further said that exploration and development on the Norwegian continental shelf is crucial to slowing the natural decline in production as fields are depleted. In this way, Norway can secure important energy supplies to our European neighbours who also want to connect more closely with allies in the energy field where stability and reliability are important.

After 2024, total investments are estimated to gradually decline towards 2029. A significant reason for this is that several of the projects initiated in 2022 and 2023 are being completed. New projects, both independent development projects and smaller tie-backs, are helping to keep the investment level up throughout the period.

“If new projects are to be realised and the decline in activity and production is limited, access to land and stability in tax and fee policy are crucial,” Andersen noted.

Compared to last year’s estimates, increased prices for various goods and services are contributing to the increase in investment estimates. A weakened krone is amplifying the effect. Increased activity is also contributing to the upward adjustment, he explained.

Impact on Norwegian Economy

Further investments on the Norwegian shelf, either in new developments or in operating fields, are important to slow the natural decline in production as fields are depleted. However, these investments also have major ripple effects into the Norwegian economy since a significant proportion of these investments are directed at Norwegian suppliers.

Statistics Norway’s latest investment census showed that the total petroleum investments were to the tune of $22.89 billion in 2024. These investments alone have provided the basis for over 100,000 jobs, according to calculations by Menon Economics. These are employees in the operating companies, suppliers and their subcontractors. The employment effects are distributed throughout the country. 

The Investment Analysis

The oil and gas industry’s investment analysis for the Norwegian shelf was prepared by Offshore Norway and published annually providing estimates for investment activity on the Norwegian shelf over the next five years based on the companies’ own investment plans at the end of the current year.

The report covers all current or planned offshore activity related to oil and gas, including electrification projects, as well as shutdowns, pipeline transport and other infrastructure including land-based activity.

The investment analysis is based on Offshore Norway’s members’ own estimates for their projects on the Norwegian shelf, and includes both sanctioned and non-sanctioned projects.

Based on the companies’ reports, the analysis provides a picture of the investment level from 2024 to 2028 as plans currently exist. Offshore Norway does not make independent assessments of any developments that are not currently included in the companies’ investment plans.

This year, Offshore Norway has received data from 14 operating companies. These are operators on fields that accounted for approximately 100% of production on the Norwegian continental shelf in 2023.