Equinor has announced plans to invest between Nkr60bn and Nkr70bn ($5.7bn to $6.7bn) annually in offshore oil and gas operations in Norway until 2035, reported Reuters.
The Norwegian company’s decision is based on its expectation of sustained strong demand for these fossil fuels.
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As Europe’s largest gas supplier and a key oil producer, Norway faces the challenge of declining output from its major offshore fields, with no new developments scheduled for the 2030s.
During a press briefing, Equinor CEO Anders Opedal said: “We see a long-term demand curve for Norwegian oil and that is why we continue to invest.”
The state-controlled energy company anticipates that it can maintain a production level of 1.2 million barrels of oil equivalent per day in Norway by 2035, a slight decrease from 1.4 million in 2023.
Moreover, Equinor plans to drill 20–30 exploration wells annually over the next decade, maintaining a similar pace to the 26 wells drilled in 2023.
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By GlobalDataEquinor also hopes to supply Europe with 40 billion cubic metres of gas each year until 2035.
This comes amid expectations of record investments by all companies in Norway’s offshore sector this year, with sustained high levels expected into 2025.
These investments are driven by ongoing field developments and rising inflation, as reported by Norway’s national statistics office.
Equinor head of domestic operations said Kjetil Hove said: “There are still attractive opportunities offshore Norway.”
The company’s announcement aligns with a report from the Norwegian Offshore Directorate (NOD) calling for increased investments in exploration and production to mitigate the expected decline in Norway’s oil and gas output.
The NOD has forecasted that the country’s oil and gas production will peak by 2025, consistent with previous projections.
The future of the sector relies on the industry’s ability to adopt new technologies and explore less-developed areas including the Barents Sea in the far North of Norway.
