Norway: Over $19B of Oil and Gas Projects Approved

By: | August 23rd, 2023

Photo by WORKSITE Ltd. on Unsplash

The government of Norway announced the approval of 19 oil and gas projects, with a total investment cost of $19 billion (200 billion kroner). The projects include new developments, additional developments of already operational fields, as well as investments for increased extraction at the existing fields.

As said by Norway’s Minister of Petroleum and Energy, Terje Aasland, “The projects are also an important contribution to Europe’s energy security,”, adding that “By carrying out these projects we ensure new production from the latter half of the 2020s, so that we can maintain high Norwegian deliveries.”

The final approval was given to nine projects operated by Aker BP, three by Equinor, and the other by Wintershall Dea and OMV. As said by Equinor’s senior vice president for project development, Trond Bokn, “We are experiencing a strong demand for oil and gas from the Norwegian continental shelf in the current geopolitical situation.” He added that “By utilizing the Aasta Hansteen and Norne infrastructures, these development projects will quickly bring new production to market with low development costs while extending the activity on the host platforms.”

As a result of its significant oil and gas reserves, Norway is one of the richest countries in the world and is the only oil and gas net exporter in Europe. The revenues from the oil and gas sector in Norway are even higher following the conflict in Ukraine, as European countries that were previously reliant on Russian energy sources, had to find an alternative supply solution.

These approvals will contribute to securing the European energy supply and result in an extended period of oil and gas production in the following decades. However, environmentalists are concerned about the resulting carbon emissions and their effect on climate change.

Ashton Henning

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