Exploration activity

In 2023, exploration activity was at the same level as in 2022. A total of 33 exploration wells were completed and 15 discoveries were made on the Norwegian continental shelf. The discoveries have a preliminary total estimate of 52 million standard cubic metres of recoverable oil equivalents. This gives the same resource growth as the previous year. Discoveries in the last years consisted of somewhat more gas than oil.
In 2023, exploration activity was at the same level as in 2022. A total of 33 exploration wells were completed and 15 discoveries were made on the Norwegian continental shelf. The discoveries have a preliminary total estimate of 52 million standard cubic metres of recoverable oil equivalents. This gives the same resource growth as the previous year. Discoveries in the last years consisted of somewhat more gas than oil.
Undiscovered resources Resource growth per sea area Resource growth in recent years Exploration companies

New commercially viable discoveries are necessary to ensure the continuation of regular activities in the near future. This means maintaining exploration activity at a high level in all sea areas. It will also be important to make new discoveries in mature areas while established infrastructure is still in place and operational. Effective use of existing infrastructure makes it more likely that socio-economically profitable resources will be produced.

Undiscovered resources by sea area

The Storting (Norwegian parliament) has opened most of the North Sea, the Norwegian Sea and the Barents Sea South (including Southeast) for petroleum activities.

The Norwegian Offshore Directorate has estimated the undiscovered resources on the Norwegian shelf at approximately 3.5 billion standard cubic metres of recoverable oil equivalents (Sm3 o.e.). This means that about half of all remaining resources on the shelf have yet to be proven.

About half of all remaining resources on the shelf are still undiscovered

Undiscovered resources are divided as follows between the different sea areas: 18 per cent in the North Sea, 21 per cent in the Norwegian Sea and 61 per cent in the Barents Sea.

Undiscovered resources by sea area

Download as image (PNG)

The figures in each column show expected recoverable volumes not yet discovered at year end. The uncertainty in the estimates is shown in the slanted line; low estimates on the left, high estimates on the right (Source: Norwegian Offshore Directorate).

Undiscovered resources by area as of 31 December 2023
Source: Norwegian Offshore Directorate

Resource growth by sea area

The most attractive areas are explored first and the largest discoveries, with a few exceptions, were proven early on the Norwegian continental shelf. This is illustrated in the figure below as large increases representing Ekofisk, Statfjord and Troll, and then the curve gradually levels off. This is a normal development compared with other petroleum provinces. Ormen Lange and Johan Sverdrup prove that it is still possible to make large discoveries on the Norwegian shelf. The sea areas on the shelf have been explored to varying degrees.

Accumulated resources on the Norwegian continental shelf, 1966-2022

Download as image (PNG)

Source: Norwegian Offshore Directorate

Accumulated resources on the Norwegian continental shelf, 1966-2022
Source: Norwegian Offshore Directorate

About a total of 1230 wildcat wells have been drilled on the Norwegian shelf. In the North Sea, 805 wildcat wells have been drilled since 1966, and the vertical jumps in the figure show that the largest discoveries were made in an early exploration phase, such as Statfjord (1974) and Troll (1979). After this, the resource growth curve levels off somewhat; in other words, the discoveries become smaller, until we see a new jump with the Johan Sverdrup discovery in 2010. After Johan Sverdrup, the graph shows steady but moderate resource growth in the North Sea.

In the Norwegian Sea, exploration activity started in 1980, and 285 wildcat wells have been drilled up to now. Here too, the largest discoveries such as Heidrun and Ormen Lange were proven relatively early in the exploration phase, in 1985 and 1997, respectively. After Ormen Lange, there has been steady growth in resources, but with significantly smaller discoveries. Among the largest discoveries made in recent years are 6507/4-2 S (Dvalin Nord) in 2021, 7122/9-1 (Lupa) in 2022, and 35/10-10 S in 2023.

In the Barents Sea, exploration activity also started in 1980, but the area has considerably fewer wildcat wells (140) compared with the Norwegian Sea. The largest discovery so far is Snøhvit, dicovered in 1984. The graph shows that there have not been many large discoveries in the early exploration phase, as was the case in the North Sea and the Norwegian Sea. More than 60 exploration wells have been drilled in the last 10 years, with significant discovery success early in the period. The largest discovery in the last 10 years is 7324/8-1 (Wisting) in 2013.

Cumulative resource growth per sea area

Download as image (PNG)

Source: Norwegian Offshore Directorate

Cumulative resource growth per sea area
Source: Norwegian Offshore Directorate

Resource growth in recent years

Both large and small exploration companies have contributed to the strong resource growth in the last few years. Resource growth was particularly strong in 2010 due to the Johan Sverdrup discovery. This is the largest discovery in recent times and the fifth largest ever made on the Norwegian continental shelf. It was made in an area that has been regularly explored since the mid-1960s, and shows the considerable potential in exploration of mature areas.

A total of 33 exploration wells were completed on the Norwegian continental shelf in 2023. More wells were drilled in the North Sea (26) than in 2022, while fewer wells were drilled in the Norwegian Sea (6) and the Barents Sea (1). Based on the companies’ plans, some more exploration wells will be drilled in 2024.

There are two types of exploration wells: wildcat and appraisal wells. Wildcat wells are drilled to explore whether there are hydrocarbon deposits under the seabed. When a discovery has been made, appraisal wells may be drilled to obtain more data about the extent and size of the discovery. Of the 33 exploration wells completed, 21 were wildcat wells and 12 were appraisal wells. It is expected that also in 2024, most of the wells will be wildcat wells.

Exploration wells spudded on the Norwegian continental shelf, 1970-2023

Updated: 11.01.2024

Source: Norwegian Offshore Directorate

Print illustration Download data Exploration wells spudded on the Norwegian continental shelf, 1970-2023 Download PDF Download as image (PNG)

High Contrast Mode

Exploration wells spudded on the Norwegian continental shelf, 1970-2023

In 2023, 15 new discoveries were made, 12 of them in the North Sea, two in the Norwegian Sea and one in the Barents Sea. The discoveries have a preliminary total estimate of 52 million standard cubic metres of recoverable oil equivalents (Sm3 o.e.). The largest discoveries in 2023 are 35/10-10 S and 25/7-11 S (Norma) in the North Sea. Several of the discoveries are located in areas where they can be developed via existing infrastructure. Here, even small discoveries can contribute to significant value creation.

Gross resource growth and number of wildcats (completed), 1990-2023

Updated: 20.02.2024

Source: Norwegian Offshore Directorate

Print illustration Download data Gross resource growth and number of wildcats (completed), 1990-2023 Download PDF Download as image (PNG)

High Contrast Mode

Gross resource growth and number of wildcats (completed), 1990-2023

439 wildcat wells have been completed on the Norwegian shelf between 2010 and 2023, resulting in 215 discoveries. These numbers show a success rate of about 50 per cent, which is high by international standards.

Diversity and competition among exploration companies

A number of the major international companies have a key position on the Norwegian shelf, since they have the expertise and financial resources that have always been needed to undertake large and complex developments.

However, as areas have matured, new and more varied challenges have arisen. This has led to a change in the numbers and types of companies engaged in oil and gas activities on the Norwegian shelf. Generally low entry barriers to exploration on the Norwegian shelf encourage a diversity of companies and promote competition. The reimbursement scheme for exploration costs has been a contributing factor. In addition, high oil prices, exciting exploration areas and good exploration results over the past decade have contributed to further diversity, competition and exploration of the Norwegian continental shelf.

Exploration costs in production licences according to the size, and number of companies, 2000-2022

Source: Norwegian Offshore Directorate

Print illustration Download data Exploration costs in production licences according to the size, and number of companies, 2000-2022 Download PDF Download as image (PNG)

High Contrast Mode

Exploration costs in production licences according to the size, and number of companies, 2000-2022

New exploration companies have been especially prominent in APA rounds (Awards in predefined areas), where blocks in mature areas on the shelf are announced. Exploration in frontier areas, on the other hand, is mainly carried out by the larger companies. The lesser-known geology in these areas increase the potential for discoveries, but can also present greater challenges in both the exploration, development and production phases.

Exploration costs are expenses related to seismic data acquisition to map potential petroleum deposits under the seabed and to drilling of exploration wells. In 2023, 33 exploration wells were completed at a total cost of about NOK 26 billion. In comparison, 33 exploration wells were completed in 2022, and exploration costs amounted to NOK 23 billion.

Oil price, number of companies on the shelf and spudded exploration wells at year end, 2000-2023

Updated: 11.01.2024

Source: Norwegian Offshore Directorate

Print illustration Download data Oil price, number of companies on the shelf and spudded exploration wells at year end, 2000-2023 Download PDF Download as image (PNG)

High Contrast Mode

Oil price, number of companies on the shelf and spudded exploration wells at year end, 2000-2023
Updated: 20.02.2024