Norway expects its oil liquids production to rise by 5.2% next year from 2024, while natural gas production is set to slightly drop by 1.6%, the Norwegian government said in its 2025 budget bill on Monday.
The bill assumes that Norway’s oil production, including condensate and natural gas liquids (NGL), will increase to about 2.1 million barrels of oil equivalent per day (boepd) in 2025, up by 5.2% from the estimated production this year.
Norway’s natural gas output will drop to 121 billion cubic meters (bcm) next year from an estimated 123 bcm output for this year.
The rise in oil production is set to be driven by the new field Johan Castberg, which is expected to start up later this year, the government said.
The floating production, storage and offloading vessel (FPSO) is now anchored at the field and Johan Castberg is on track for start-up towards the end of the year, Equinor said last month.
Johan Castberg, a large field in the Barents Sea, has estimated recoverable volumes of between 450 and 650 million barrels. The field will produce for 30 years, and at its peak, Johan Castberg may produce 220,000 barrels per day, Equinor says.
The government also expects large revenues from the Norwegian petroleum industry in 2024, but they will be lower than in 2023, due to lower expected natural gas prices compared to last year.
“Oil and gas production is expected to remain relatively stable towards 2030,” the government said.
Further exploration efforts and new discoveries would be crucial to slowing the expected decline in Norway’s oil and gas production in the 2030s, the authorities of Western Europe’s largest oil and gas producer have said in recent years.
“Production from the Norwegian continental shelf contributes large amounts of energy and is significant for the energy supply to Europe,” Energy Minister Terje Aasland said today.
“We will continue to develop the petroleum industry and remain a stable and long-term supplier of energy to Europe.”
By Tsvetana Paraskova for Oilprice.com
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Publish date : 2024-10-07 06:18:00
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