Norway 2013 Oil Investments Adjusted Up to NOK207.8 Billion

   By Kjetil Malkenes Hovland 
 

OSLO--Expected record investments in Norway's oil and gas sector in 2013 were adjusted further upward in the country's fourth-quarter survey, official data showed Thursday.

Investments in the country's booming offshore oil and gas sector are expected at 207.8 billion Norwegian kroner ($36.9 billion) in 2013, according to the fourth-quarter survey, Statistics Norway said, the highest estimate since the agency started measuring oil investments in 1985.

The 2013 estimate is NOK3.8 billion higher than in the third-quarter survey, the agency said, due to higher investments in among other things exploration, field development and existing fields. Two new field developments are included since the previous quarter.

A persistent high oil price "contributes to the decision to develop many new fields, and triggers many new projects for increased oil recovery in producing fields, and provides incentives to increase drilling activity," Statistics Norway said.

Expected 2012 oil and gas investments were adjusted down to NOK180.6 billion from NOK184.9 billion in the previous quarter, due to lower investments in exploration, field developments and operation of existing fields. The figure could be even lower, as some planned investments will likely be delayed until 2013, the agency said.

"The slowdown in exploration is due to exploration wells being postponed due to a rig shortage," Statistics Norway said.

The quarterly petroleum investment statistics are based on estimates submitted from oil and gas companies operating offshore Norway.

The biggest part of 2013 investments will be spent on maintaining output in currently producing fields, estimated at NOK102.5 billion, up from an estimate of NOK96.9 billion in the previous quarter.

Some of the biggest investments in 2013 are expected in giant fields such as the Statoil ASA (STO)-operated Troll and Oseberg, and the ConocoPhilips (COP)-operated Ekofisk.

Investments in new fields are expected to total NOK63.8 billion in 2013, up from an estimate of NOK62.1 billion in the third-quarter survey.

Some of the most expensive new fields are the Eni SpA (E)-operated Barents Sea field Goliat, the ConocoPhilips-operated Eldfisk II, and the Lundin Petroleum AB (LUPE.SK)-operated Edvard Grieg field.

Investments in exploration in 2013 are estimated at NOK37 billion, down from a third-quarter estimate of NOK40.7 billion.

Several additional projects are expected to be approved by the summer of 2013, including Aasta Hansteen, Draupne and Dagny/Eirin. If approved, these projects will likely increase 2013 investments even further, according to Statistics Norway.

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