OSLO: Norwegian oil companies say spending on exploration and production is likely to fall more than previously expected next year, an official survey showed Wednesday, as they continue to delay projects and slash investment.
Oil companies operating in Norway, Western Europe’s largest oil exporter, now expect to spend 150.5 billion Norwegian kroner ($18.37 billion) on exploration and production next year, the weakest figure since 2011 and roughly a third below the sector’s all-time high of 220.7 billion kroner two years ago, Statistics Norway said.
The additional spending reduction next year was attributed mainly to delayed shutdowns and the removal of old production facilities, the agency said.
Oil companies also lowered expectations for spending in 2016, to 163.5 billion kroner, a 16% drop on the year and 1.5% below a similar estimate made in May. The oil and gas downturn has dented Norway’s growth, as petroleum activity contributes nearly a fifth of gross domestic product and nearly 40% of export revenue.
