Norway sees an increase in oil production and a decrease in gas production in 2025

Norway expects its oil liquids production to grow by 5.2 percent next year compared to 2024, while natural gas production will fall slightly by 1.6 percent, the Norwegian government said in its budget bill on Monday. 2025.

The bill assumes that Norway’s oil production, including condensate and natural gas liquids (NGLs), will rise to around 2.1 million barrels of oil equivalent per day (boepd) in 2025, up 5.2% from of the estimated production this year.

Norway’s natural gas production will fall to 121 billion cubic meters (bcm) next year from an estimated output of 123 billion cubic meters this year.

The increase in oil production will be driven by the new Johan Castberg field, which is expected to start up later this year, the government said.

The floating production, storage and offloading (FPSO) vessel is now moored in the field and the Johan Castberg is on track to start up towards the end of the year, Equinor said last month.

Johan Castberg, a large field in the Barents Sea, estimated recoverable volumes between 450 and 650 million barrels. The field will produce for 30 years, and at its peak, Johan Castberg could produce 220,000 barrels per day, Equinor says.

The government also expects high revenues from the Norwegian oil 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 through 2030,” the government said.

Additional exploration efforts and new discoveries would be crucial to slowing the expected decline in Norway’s oil and gas production in the 2030s, authorities in Western Europe’s biggest oil and gas producer have said in recent years.

“Production on the Norwegian continental shelf contributes large amounts of energy and is significant for Europe’s energy supply,” Energy Minister Terje Aasland said today.

“We will continue to develop the oil industry and remain a stable and long-term supplier of energy for Europe.”

By Tsvetana Paraskova for Oilprice.com

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