Continued high gas production and many new development projects

After Russia’s invasion of Ukraine, Norway has become Europe’s largest exporter of natural gas. This is a consequence of the EU’s goal to reduce imports of Russian gas.

“Norway has fortified its role as a predictable and long-term supplier of energy to Europe, not least as regards gas,” says Director general Torgeir Stordal.

High gas production

Production through the first five months of the year amounts to 50.5 billion standard cubic metres (Sm3) of gas.

  “Production for the first four months was about on par with last year’s level, which was the year when we delivered the most energy in the form of gas. Maintenance work in May has led to somewhat lower production,” Stordal says.  

Increased oil production

43 million Sm3 (270 million barrels) of oil were produced from the Norwegian shelf during the first five months of this year, which is a bit higher than in 2022. This is due to the fact that Johan Sverdrup phase 2 in the North Sea came on stream towards the end of last year. Additional fields have started to produce in the first six months of 2023.

Exploration has yielded many discoveries

Exploration activity has been high so far this year with 12 completed wildcat wells, with discoveries made in more than half. The authorities expect the high exploration activity to continue through the autumn. A total of just under 40 wildcat and appraisal wells are expected this year. This means that exploration is holding steady at a high level.

“Most of the wells are being drilled near infrastructure, which could yield valuable additional resources for existing fields. At the same time, it’s important that the companies also drill wells in less-explored areas,” Stordal says.

Investments in excess of NOK 200 billion

This week, 19 oil and gas projects on the Norwegian shelf got the go-ahead  from the authorities (Norwegian only). Total investments are in excess of NOK 200 billion. These projects include new developments, further developments of existing fields and investments in projects to promote improved recovery from existing fields.

“Production of oil and gas on the Norwegian shelf will decline naturally after 2025, but these projects will help curb the fall. At the same time, the projects provide a foundation for high activity in the Norwegian supplier industry, and fortify the position of the Norwegian shelf as a stable oil and gas supplier for many years to come,” Stordal says.

Approval of new projects on the Norwegian shelf - regjeringen.no

Robust interest in mature areas on the NCS

In January, 25 companies were offered participating interests in a total of 47 production licences in pre-defined areas (APA). More new areas were added in this year’s APA in May, with an application deadline in late August.

Growing interest in carbon capture and storage

Interest in storing CO2 on the Norwegian shelf is on the rise. Two areas have been announced so far this year, and the authorities have awarded two exploitation licences for storage.

“Capture and storage of CO2 is an important climate measure which can also bring exciting opportunities for value creation. The NPD possesses unique expertise and knowledge about the subsurface on the shelf. We use this knowledge to map where CO2 storage is suitable,” Stordal says.

Knowledge about offshore wind

In 2023, the NPD has continued its efforts to conduct pilot surveys for offshore wind in Sørlige Nordsjø ll and Utsira Nord. Data acquisition in Sørlige Nordsjø ll started in mid-April, and data processing is well underway. Data acquisition in Utsira Nord started in early June.

This will provide important knowledge for future placement of wind turbines offshore.

The NPD has mapped seabed minerals

The NPD has mapped the potential for minerals on the NCS for many years. Earlier this year, the NPD presented a resource assessment for seabed minerals. The Government recently submitted a Report to the Storting (Parliament) (Norwegian only) including a proposal to open parts of the shelf for commercial seabed mineral activity.

The NPD continues to collect additional data on seabed minerals by conducting expeditions.

Accessible data creates substantial value

Over the course of the past year, the NPD has made 30,000 data sets available to the public. This is data that was previously subject to confidentiality, but has now been re-classified. This means that the companies have access to much more data, which in turn contributes to greater value creation on the Norwegian shelf.

Another important milestone is the introduction of a cloud-based solution for Diskos, which is the national data repository for exploration and production-related information from the Norwegian shelf. All seismic, well and production data reported to the NPD is uploaded to Diskos. The 2.0 version will facilitate users in processing and interpreting data where it is stored, instead of downloading the data to a local hard drive.

30,000 data sets released for public access - Norwegian Petroleum Directorate (npd.no)