Norwegian oil and gas companies have maintained estimates for record spending this year even as they become more selective about projects amid rising costs and lower profitability.
Spending is forecast to reach £22.3billion ($37.3billion) this year, according to Statistics Norway, based on its latest quarterly survey of producers and explorers.
The figure represents a seven percent rise on last year’s investment.
Even though spending is estimated to climb to a record in 2014, the statistics bureau’s forecast represents a slowdown in investment growth from last year, when the rate was more than 20 percent.
A number of oil majors from the country have cut spending plans for the coming years in a bid to boost returns as costs rise and oil prices stagnate.
A slowdown in spending will hurt efforts to boost recovery at producing fields in particular, the Norwegian Petroleum Directorate and state-owned Petoro AS have warned.
While spending on new field developments is expected to reach £8billion this year – £100million higher than previously estimated – spending forecasts on producing fields have been lowered by almost £400million to £9.8billion, Statistics Norway said.
Oil-industry investments may fall as soon as next year, the Norwegian Oil and Gas Association warned in November. The NPD, which oversees the industry, expects spending to climb to a record 214 billion kroner next year from 210 billion kroner this year before falling in 2016, it said in January.
Petroleum and Energy Minister Tord Lien said last month that Norway will seek to attract more, large companies to compete with Statoil, in which the government owns a 67 percent stake.
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