Quick Enquiry
Norway investments set for new high
Posted on: 07 Mar 2013  |   Tags: Invest in Norway , Norway Economy , Norway Immigration ,

Investments in Norway’s booming oil and gas sector are set to hit a record Nkr198.7 billion ($34.8 billion) this year, after reaching Nkr172.5 billion in 2012, although the figure is down on an earlier forecast from the country’s statistics agency. The forecast for 2013 has been cut by Nkr9.1 billion compared with Statistics Norway’s previous prognosis, mainly due to expected reduced spending on exploration and fields in operation. Opulentus NorwayExpenditure on exploration and producing fields is now estimated at Nkr32.8 billion and Nkr96.2 billion respectively this year, while spending on new developments is seen slightly up on the earlier forecast at Nkr64 billion. The reduced estimate was reportedly attributed by some analysts to capacity constraints as the country’s supply industry feels the strain of high offshore activity, while rigs for exploration and production drilling are in short supply. The cut in planned investment could also point to a lower growth estimate for the Norwegian economy set to be revealed by the central bank next week, according to DNB Markets. Total spending last year represented a Nkr26.2 billion increase from 2011, driven largely by higher investments in new developments and producing fields, though was Nkr8.1 billion lower than the agency’s earlier forecast for the year as cash spent on exploration, onshore activity and pipelines dropped. High levels of investment were seen last year on the existing Troll and Ekofisk fields with the stalwart pair also set to account for a large slice of spending in 2013, along with Oseberg. Despite the cut in the agency’s forecast for this year, the prognosis is still seen by industry association Norwegian Oil & Gas (NOG) as indicative of continued expansion in the key sector. “The outlook for a continued high level of activity in Norway’s petroleum sector must be viewed as positive in a period when growth in the land-based economy is falling,” said NOG’s chief economist Bjorn Harald Martinsen. Source: http://www.norwaynews.com/en/~view.php?73Vb754UQc482bB2852gh844QI3888Qr76FAi353N8P8

Share your Comments
Please Login to view/submit Comments & Replys