Investments and operating costs

Major investments have been made in exploration, field development, transport infrastructure and onshore facilities since petroleum activities started on the Norwegian continental shelf. Fields that are on stream also continue to require a substantial level of investment. Much of the Norwegian shelf is now served by an extensive network of installations and pipelines tied into onshore facilities. New discoveries can be tied back to this infrastructure. This will encourage a high level of activity and effective exploitation of resources on the shelf in the years ahead.

There are many approved projects scheduled for completion in the coming years, and new investment decisions must be made to avoid a significant decline in activity levels.

The cost estimates below are based on assumptions about oil price developments, cost trends and investment decisions by oil companies. The estimated figures are therefore considerably uncertain, and the uncertainty increases over time.

Overall costs

The figure below shows historical figures and estimates for the Norwegian shelf for investments, costs for field operation, exploration, decommissioning and disposal, as well as other costs. The high level of investments and exploration activity, combined with rising operating costs, resulted in record overall costs on the Norwegian continental shelf in 2014. Developments after 2014 have led to a considerable reduction in total costs, but the activity level today is historically high.

In 2025, the overall costs were close to NOK 390 billion. Investments made up about 60 per cent of this, operating costs 25 per cent, and exploration costs about nine per cent. A real reduction in total costs of two per cent is expected in 2026. Towards 2030, a gradual decline in investment activity is expected as several development projects near completion. The increase in total costs towards 2025 is largely related to increased investments due to investment decisions taken for several projects in the autumn of 2022.

Exploration costs

Exploration costs include costs related to seismic data acquisition to map potential petroleum deposits under the seabed and related to drilling exploration wells. Exploration wells are divided into two types, wildcat wells and appraisal wells. Wildcat wells are drilled to find out whether there are hydrocarbons below the seabed. When a discovery has been made, appraisal wells may be drilled to obtain more data about the size and extent of the discovery.

In 2025, exploration costs on the Norwegian shelf amounted to NOK 33.5 billion. A total of 49 exploration wells were completed, 40 of which were wildcat wells and 9 were appraisal wells. Exploration drilling resulted in 21 discoveries in 2025.

Investments

Major investments have been made in field development, infrastructure and onshore facilities in Norway, and the development plans submitted to the authorities in 2022 will contribute to a continued high level of activity. At the same time, substantial investments are being made in producing fields to improve recovery and extend the lifetime of the fields. This requires new wells, modification of existing facilities and new infrastructure. Total investments, excluding exploration, were NOK 241 billion in 2025 and are estimated to be NOK 227 and 210 billion in 2025.

The overall investments in the petroleum sector (including exploration and decommissioning costs) account for about one-fifth of the total investments in production capital in Norway. This is far more than for any other industry in Norway. Even the smaller offshore projects are comparable to large industrial investments on mainland Norway.

In 2025, no plans for new field developments were submitted. The Fram licensees have decided to develop Fram South, as a subsea development comprising four new subsea templates tied back to the existing Fram infrastructure and the Troll C platform.

Several larger projects on fields in operation, as well as new field developments, contribute to a high level of activity which is expected to decrease towards the end of the forecast period.

Operating costs

The main operating costs on the Norwegian shelf are those related to the maintenance of platforms and wells, as well as costs for daily operation of the facilities. These include labour costs for all personnel who perform modifications and maintenance of machinery and other equipment. This work is essential if costly production downtime is to be avoided.

At the end of 2025, 97 fields on the Norwegian continental shelf were producing oil and gas, and the total operating costs for the year were close to NOK 94 billion. The operating companies are engaged in efforts to reduce the operating costs; however, increased costs for power contribute to somewhat higher overall costs.