Oil firms in Norway will drill 18 per cent fewer exploration wells next year as the industry focuses on existing fields, a survey showed on Thursday, potentially undermining the government's goal of sustaining output from Europe's largest petroleum producer.
The Norwegian Government wants the industry to explore more in order to sustain its oil and gas output, but the survey by Offshore Norway of its members showed drilling and investments will fall next year.
Oil companies operating on the Norwegian continental shelf, including Equinor, Aker BP and Vaar Energi, plan to drill some 37 exploration wells in 2026, down from 45 drilled so far this year, the survey showed.
"This is due to a combination of the fact that some companies will prioritise production drilling next year, but also somewhat fewer good prospects," Offshore Norway said.
The government is preparing to launch a new exploration licensing round next year in frontier, less explored areas, such as in the Barents Sea.
Overall, oil and gas investments in Norway are projected to fall by four per cent to 270 billion crowns ($26.8 billion) in 2026 compared with this year as large, ongoing development projects are nearing completion.
The predicted investment decline is smaller than the eight per cent drop forecast previously, but this is largely due to rising costs, expansion of some ongoing projects and an increased focus on extraction from existing fields, Offshore Norway said.
Statistics Norway (SSB) has also estimated that petroleum investments will fall next year.
The decline will hit the country's extensive supplier industry, which is already coming under pressure, with companies involved in construction of oil platforms and completion of major developments most exposed, Offshore Norway said.
Suppliers providing subsea services, maintenance, and drilling rig providers are expected to be less affected despite the overall slowdown, it added.
(Reporting by Nerijus Adomaitis, editing by Terje Solsvik and Bernadette Baum)