Norwegian oil and gas companies to spend $24 billion in 2024

Oil and gas companies operating on the Norwegian Continental Shelf will spend 247 billion kroner ($24 billion) this year, reflecting growth in investments for exploration and on existing fields.

Spending on oil and gas extraction and pipeline transport will jump by 15% in 2024, compared with the 215 billion kroner spent a year earlier, Statistics Norway said on Tuesday. Spending in 2025 is forecast to be 216 billion kroner, the agency said.

There will be “high investment activity next year on the many field developments that were started at the end of 2022,” Statistics Norway said. New pipelines to connect these developments, as well as greater activity to bolster output from fields already on stream, will further drive spending, they said.

There was a rush of development plans submitted toward the end of 2022, as Norwegian oil and gas companies sought to take advantage of Covid-era tax breaks. The price of crude plunged during the pandemic, sparking concerns over investment and job cuts in the industry.

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