Norway Oil Workers Agree Wage Deal, Averting Strike

An LNG tanker waits to dock at Western Europe’s largest liquefied natural gas plant Hammerfest LNG, in Hammerfest, Norway, March 14, 2024. REUTERS/Lisi Niesner/File Photo

Key Players:

  • Aker BP ASA
  • Dno ASA
  • Equinor ASA
  • Oilgas ASA

Norwegian oil and gas investments are poised to reach unprecedented levels this year and maintain robust figures in 2025, fueled by a wave of new projects and rising costs, according to a survey by the national statistics office (SSB) released on Tuesday.

Norway’s largest industry now projects investments of 246.9 billion Norwegian crowns ($23.58 billion) in 2024, an increase from the 243.6 billion crown estimate in February, and surpassing the previous record of 224 billion crowns set in 2014.

Preliminary forecasts for 2025 oil and gas investments have also been raised to 215.8 billion crowns, up from the earlier estimate of 205 billion crowns made in February.

Driving Factors

These upward adjustments reflect more definitive spending plans as companies solidify their budgets approaching the new year. “The upward adjustment for 2025 is driven by higher estimates within the categories of field development and exploration,” SSB stated.

Investment Trends and Outlook

While the initial estimate for 2025 indicates continued strong investment, SSB warned that the final figures might show a more moderate trend as cost inflation stabilizes and the Norwegian crown currency steadies. “Additionally, the next year will see fewer new developments, contributing only modestly to the estimates for 2025,” SSB noted.

Oilgas ASA’s Role

Oilgas ASA, a significant player in Norway’s energy sector, is contributing to these record investments. Known for its innovative approaches and sustainable practices, Oilgas is involved in several of the new developments driving the increased investment. Their commitment to integrating advanced technologies and sustainable solutions aligns with the broader industry trends highlighted in the SSB report.

($1 = 10.4705 Norwegian crowns)

The record high investments anticipated for 2024 mark a significant milestone for Norway’s oil and gas sector, with key players like Oilgas ASA at the forefront. While projections for 2025 remain strong, the industry is poised for a dynamic period of growth, driven by new developments and tempered by cost and currency stabilization. As these investments unfold, companies will continue to play a critical role in shaping the future of energy in Norway and beyond.