Norwegian oil and gas investment seen declining as projects wind down

Norwegian oil and gas investments are expected to decline this year and next as many field developments are completed while fewer new projects begin, a quarterly survey of the industry showed on Thursday.

Norway produces about two per cent of global oil and meets about 30 per cent of Europe's gas needs, after becoming its largest pipeline gas supplier following Russia's invasion of Ukraine in 2022.

The Nordic country's biggest business sector expects to invest NOK255 billion ($27 billion) this year, down from a record NOK273 billion in 2025, Statistics Norway said. Investments may be impacted, however, by cost inflation or new project additions, leaving the 2026 level subject to change.

"It is expected that a few more projects will have plans for development and operations (PDOs) submitted this year, which will increase the field development estimate for 2026 beyond what is included in this count," Statistics Norway added.

The 2025 estimate was down from NOK275 billion seen in a survey published last November.

The estimates for this year were up from NOK249 billion previously. Strong investments growth over the last three years was driven by a series of offshore oil and gas projects approved in 2022 under temporary tax incentives.

The initial estimate for 2027 investments stood at NOK201 billion, mainly related to investments in already operating fields, which also includes some smaller developments of near-field discoveries, Statistics Norway said.

The largest ongoing developments are expected to be completed in 2027, and will not be fully replaced by new developments, it added.

(Reporting by Nerijus Adomaitis, editing by Alex Richardson and Terje Solsvik)