E&P companies spent about NOK660 billion ($62.5 billion) exploring for oil and gas on the Norwegian Continental Shelf between 2004 and 2023, according to the Norwegian Offshore Directorate (NOD).
Their efforts led to more than 300 discoveries over the period. Although 110 of the finds are thought unlikely to go forward to development, the other 190 are considered commercial, with combined reserves of just below 1,600 MMcmoe.
Roughly 50 have already been developed and are producing, which means that 70% or so of the resources proven have yet to be produced.
These investments will remain profitable, the NOD said, as more fields come onstream.
Over the last five years, NOD added, the value of the discoveries made has been more than twice the exploration costs, with numerous finds as profitable tiebacks to existing infrastructure. Discoveries in the Equinor-operated Troll area in the North Sea are strong examples.
Norway’s remaining extensive oil and gas resources could provide a basis for production, export and value creation for many years to come, the NOD said. However, development will require continued exploration and additional investment in fields, discoveries and infrastructure.
Not investing could result in rapid dismantling of the petroleum activities.
