The Norwegian Ministry of Energy approved oil and gas projects with a total value of more than 200 billion crowns (about 18,500 million dollars). Seeks to maintain production levels to continue to be the largest supplier of natural gas in Europe. The initiatives contemplate 19 new developments, constructions in fields offshore and more oil recovery projects.
Projects include Aker BP’s Yggdrasil and Valhall PWP og Fenris in the North Sea, as well as Irpa of Equinor ASA in the Norwegian Sea according to a statement released by the ministry on Wednesday. In Yggdrasil up to 55 wells are planned. They estimate that it contains around 650 MMboewhich makes it one of the largest development projects in the country in recent years.
“The Yggdrasil project is the largest industrial project that the Storting will deal with in this period. The projects generate activity in the shipyards de Egersund, Stavanger, Haugesund, Stord, Verdal and Sandnessjøen, así como en una series of suppliers and sub-suppliers throughout the country”, said the Minister of Oil and Energy, Terje Aasland in the statement.
Norway ranks as the largest supplier of natural gas in Europe after the Russian invasion of Ukraine. Demand is expected to continue to grow as buyers turn their backs on Russian energy.
“Norway is the only net exporter of oil and gas in Europeand by implementing these projects we ensure a new production from the second half of the 2020s, so that we can keep Norwegian deliveries up”, indicated the minister.
At the end of last year they filed a series of strategies to benefit from the tax breaks of the pandemic. With them they intended to maintain investments as demand dropped. Temporary tax incentives caused large number of requests from companies in the industry.
“These are projects that will contribute to continued high and stable production from the Norwegian continental shelf, as well as the creation of employment and value, “said the minister. The government repeatedly stressed that Norway’s oil and gas resources are essential for Europe’s energy security and will be needed for decades to come.