Norway Expects Higher Investments in 2018
Norway estimates that total investments in the petroleum sector will rise slightly next year.
The government said October 12 it expects such investments, including exploration and removal costs, is to be around kroner 157bn in 2018, slightly above the investment allocation for 2017 of kroner 150bn ($18.9bn) in 2017.
"It is pleasing to see that there are signs of optimism in the petroleum sector and that it is reflected by increased investments and more activity on the Norwegian continental shelf. The industry has taken the necessary steps to reduce costs and streamline, so that more initiatives and projects are being implemented in the future," said petroleum and energy minister Terje Soviknes.
The government also forecast that its net cash flow from petroleum activities would exceed kroner 183bn ($23.1bn) in 2018. That's a 1% increase from the 2018 estimate included in the revised 2017 national budget. The kroner 183bn figure includes taxes and fees, income from the government's direct financial commitment (SDFI), and dividends from Statoil. It assumes 2018 prices of kroner 439/b ($55.35) for oil and kroner 1.62 (20.4 US cents) per standard m3 gas - all conversions are by NGW at the current exchange rate.