Norway sees record oil, gas investment in 2024

Norway's oil and gas sector is on course to hit record investment levels this year, boosted by rising costs and a flurry of projects that got off the ground in late 2022, according to the latest forecast from government data provider Statistics Norway.

Total investment in oil and gas activity in the country, including pipeline transportation, is now projected to reach 247bn Norwegian kroner ($23.5bn) in 2024, up by 15pc from 2023 and 10pc higher than the previous record set in 2014.

This year's investment growth is underpinned by higher spending on field development, thanks to a record number of new project approvals in 2022.

"It is common for development projects to have higher investments in the second year of development than in the first," Statistics Norway said.

There was a flurry of development plans submitted to Norwegian regulators towards the end of 2022 as operators rushed to beat the end of a temporary tax relief regime that was introduced in 2020 to help the oil and gas sector weather the effects of the Covid-19 pandemic.

The investment forecast for next year is around Nkr3bn higher than the previous estimate for 2024 made in February. Higher spending estimates on producing fields and on exploration drove the upwards revision.

Statistics Norway has also raised its forecast for oil and gas sector investment in 2025, to Nkr216bn from Nkr205bn. Next year's forecast could be revised higher still as companies confirm future spending plans, although Statistics Norway said it expects only a few new developments to be launched in the next 12 months.

By James Keates