Equinor plans to invest 60 billion-70 billion Norwegian crowns ($5.7 billion-$6.7 billion) a year in oil and gas offshore Norway until 2035 as it expects continuing strong demand for the fossil fuels, it said on Monday.

Norway is Europe’s largest gas supplier and a major producer of oil, pumping some four million barrels of oil equivalent per day, but many of its largest offshore fields are in decline and there are currently no new developments scheduled for the 2030s.

“We see a long-term demand curve for Norwegian oil and that is why we continue to invest,” Anders Opedal, CEO of state-controlled Equinor, told a press conference.

Equinor said it could produce 1.2 million barrels of oil equivalent per day (boed) in Norway in 2035, compared with 1.4 million boed in 2023, and drill 20-30 Norwegian exploration wells annually over the next 10 years compared with 26 wells in 2023.

In terms of gas alone, Equinor reiterated it expected to deliver 40 billion cubic metres to Europe every year until 2035.

Oil and gas investments by all companies offshore Norway are expected to hit a record this year and stay at elevated levels in 2025, driven by ongoing field developments and rising inflation, according to national statistics office data.

There were still “attractive opportunities” offshore Norway, Kjetil Hove, Equinor’s head of domestic operations, told the same press conference.

By: Reuters , August 26, 2024