Counting cash: Norwegian players
'Norway players tighten purse strings'
Investment by Norway's oil and gas industry should fall to about Nkr118 billion ($21.11 billion) next year, down from this year's record spend of Nkr129 billion, the country's Oil Industry Association, the OLF, said today.
In September, Statistics Norway (SSB) estimated that investments on the Norwegian Continental Shelf would rise to Nkr145.4 billion next year, slightly up from its 2009 estimate of Nkr143.5 billion , and up from last year's Nkr123.9 billion spend.
"The estimate entails a still high activity level on the NCS over the next years, but at the same time it is expected a drop from 2009," Reuters quoted the OLF saying in a report compiled by consultants Econ Poyry.
It said the biggest uncertainty was whether planned projects would be executed or postponed.
The OLF said the reason behind the gap between its own estimates and those of SSB could probably be explained by its lower price increase estimate than what oil groups have reported to SSB and postponement of investments compared to those from SSB.
It added investment was expected to drop next year and in 2011, but pick up after that. It estimated investments around Nkr105 billion in 2011.
The SSB will deliver a new investment forecats on 3 December.