Oil Daily | Norway's Equinor Halts Gullfaks C Platform, 2024 Oil and Gas Investments to Hit Record High

【Global Oil Supply and Demand】 Norway is the fourth-largest natural gas exporter in the world, supplying nearly a third of the gas consumed in the EU and UK. Oil and gas account for 62% of Norway’s exports in 2023.

【Oil-Producing Countries Dynamics】 Norway’s Equinor has shut down its Gullfaks C platform in the North Sea due to a well control problem, leading to the evacuation of some workers. Despite this, production from the field remains stable. However, natural gas production at the site will be reduced by 6.6 million cubic meters today.

【Latest Oil Policies】 Norway's statistical agency reported that investment in oil and gas developments this year is set to hit a record high amid rising costs and field expansion. Total investments in oil and gas activity for 2024 are estimated at $24 billion, a 4.1% increase from previous estimates.

【Industry News】 Total investments in oil and gas activity in 2024, including pipeline transportation, are estimated at an all-time high of 257 billion Norwegian crowns, Statistics Norway said earlier this month. This reflects higher production drilling costs within existing fields.

Investment estimates for 2024 show a 21% increase from the corresponding estimate for 2023, driven by significantly higher costs reported for certain development projects than previously estimated by operators.

【Company News】 Equinor, the operator of the Gullfaks field with a 51% stake, reported a dip in second-quarter profits this year, although net results surpassed analyst estimates. This performance was attributed to higher natural gas sales and increased prices across marketed products.