- Norwegian Oil companies now plan to invest 232 billion crowns (CZK) in 2024, compared to a previous estimate of CZK207 billion.
- National Statistics Office (SSB) said the weakening of the Norwegian crown against the U.S. dollar and the euro reinforced the already high-cost inflation.
A national statistics office (SSB) survey showed yesterday that Norwegian oil and gas companies plan to invest more in 2024 than previously thought as inflation drives up the cost of field developments. Oil companies now plan to invest 232 billion crowns (CZK) in 2024, compared to a previous estimate of CZK207 billion.
SSB said in a statement, “The higher estimate is mainly due to significantly higher reported cost estimates on some development projects. These increased costs will probably not contribute much to expanded production capacity more than initially planned.” So far this year, only one plan for a new field development has been submitted. This is after plans for more than 16 projects had been submitted in 2022 to take advantage of tax incentives.
In September, Equinor submitted a 4 billion-crown plan for development and operations (PDO) for its Eirin gas discovery in the North Sea. Development projects are only included in the investment survey when a PDO is submitted to authorities. SSB said the weakening of the Norwegian crown against the U.S. dollar and the euro reinforced the already high-cost inflation as measured in crowns.