Oil and gas companies are gearing up for record-high investments in oil and gas extraction and pipeline transportation offshore Norway in 2024. According to Statistics Norway, spending is expected to reach $23.6 billion (247 billion Norwegian crowns), which is the highest nominal estimate ever recorded.
This increase in investment is attributed to higher expected spending on exploration and field developments. Companies are looking to boost exploration activity and spending to maintain production levels and increase exports to the rest of Europe. The Norwegian Offshore Directorate highlighted the importance of exploring new frontier areas to ensure the long-term sustainability of the industry.
In 2025, investment is projected to remain strong, although not as high as in 2024 due to fewer new developments planned for the year. Total investments in oil and gas activity, including pipeline transportation, are estimated to reach $20.6 billion (216 billion crowns) in 2025, marking a 5.2% increase from the previous quarter’s estimates.
With a focus on areas around existing infrastructure for quick tie-back discoveries, companies are set to spud 40 to 50 exploration wells this year, up from 34 wells drilled last year. The robust exploration and production activity of the past year is expected to continue into 2024, ensuring a steady flow of investment into Norway’s oil and gas sector.
