Norwegian investment in oil and gas will hit a record high next year – but will also come with increasingly large costs, the country’s statistics agency has warned.
Investment in oil and gas projects from Norwegian firms is predicted to hit more than £22billion in 2014, 5.4% up on this year’s spend.
But Statistics Norway warned in its quarterly update that the rise in investment would mean increased costs due to the technology required.
“Some development projects have met technological challenges, which have pushed the costs up,” the agency warned.
“The high activity in the oil and gas sector has also resulted in higher costs in many of the development projects.”
THe increase in activity has also meant an acceleration in some developments – despite projects such as Johan Castberg having been delayed.
“In some development projects, investments initially planned for implementation in 2013 are now moved to next year,” it wrote.
“In other projects, investment plans are speeded up; investments initially planned for implementation in 2015 are moved to 2014.”
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