Survey shows that oil companies in Norway will drill 18% less exploration wells by 2026.

A survey on Thursday showed that oil firms in Norway are planning to drill 18% less exploration wells next, as they focus on existing fields. This could undermine the government's aim of maintaining production from Europe's biggest petroleum producer.

Offshore Norway's survey of its members shows that drilling and investment will decline next year.

The survey revealed that oil companies on the Norwegian continental Shelf, such as Equinor Aker BP Vaar Energi, intend to drill 37 exploration wells by 2026. This is down from the 45 drillings done so far this year.

Offshore Norway stated that this is because some companies are prioritizing production drilling in the coming year. There are also fewer prospects.

The government plans to launch an exploration licensing round in less explored frontier areas such as the Barents Sea next year.

Oil and gas investment in Norway is expected to drop by 4% in 2026 to 270 billion crowns (about $26,83 billion), compared to this year, as major ongoing projects near completion.

Offshore Norway reported that the predicted investment decline was smaller than an 8% drop previously forecast. This is due to increasing costs, expanding some current projects, and a greater focus on extracting from existing fields.

Statistics Norway (SSB), has also predicted that oil investments will decline next year.

Offshore Norway stated that the decline would hit the extensive supplier industry of the country, which was already under pressure. Companies involved in oil platform construction and major development are most at risk.

It added that suppliers of subsea and maintenance services, as well as drilling rigs, are likely to be less affected by the slowdown.

(source: Reuters)