Business Sectors
Business Sectors
Events
Contents
HamiltonJet LTX53: Greater control where offshore wind crews need it mostSponsored by HamiltonJet
Register to read more articles.
Equinor invests US$18.6Bn in Norwegian energy projects
Norway’s national budget on energy projects is rising due to cost overruns, upgraded orders and delays in securing machinery
Equinor is investing NKr198Bn (US$18.6Bn) in offshore oil and gas developments and onshore related projects in Norway
This state-run energy giant is involved in 19 projects in Norway, including 13 for which the company is the main operator and stakeholder, as listed in the Ministry of Energy’s proposed National Budget for 2025.
The total investment framework of NKr198Bn billion for Equinor-linked projects include commitments on project stages from commencement to commissioning, including sizable increases in capital expenditure for development or order changes and upgrades.
“Equinor has a good portfolio of profitable projects being developed in Norway, which will contribute to long-term security of supply of oil and gas to Europe,” Equinor head of project development Trond Bokn said.
“In 2023, our developments contributed to high activity and NKr25Bn to the Norwegian supplier industry. Together with our partners and the industry, we have completed six projects during the past year.”
A majority of Equinor’s recent projects involve developing new oil and gas fields or significant extensions to existing assets. Some of the projects incorporate green energy initiatives, such as the Northern Lights carbon capture and storage project and power-from-shore installations to the Oseberg and Sleipner production platforms.
Equinor said it has seen considerable additional costs on its projects, citing cost pressures that included inflation, rising capital expenditure and currency fluctuations linked to its developments in Norway.
Equinor said the overall rise in cosrts since the company firmed up its plans for development and operation (PDOs) comes to NKr32.9Bn (US$3Bn). Currency losses and costs linked to the Johan Castberg and Oseberg gas compression projects account for a majority of the figure, according to Equinor.
The Johan Castberg and Oseberg gas compression and partial electrification projects have experienced a post-PDO cost increase of more than 20%, while Equinor calculated that project expenditures in its wider portfolio have risen by around 3%, or NKr6.5Bn since 2023.Since the PDO, estimated costs have grown by NKr25.7Bn, and currency effects account for NKr8.1Bn.
Equinor said a longer than expected stay for the floating production storage and offloading (FPSO) ship at Aker Solutions shipyard at Stord added to its costs by NKr2.2Bn. The FPSO for Johan Castberg is now anchored at the field and is on track to being production by the end of this year.
On the Oseberg gas phase 2 and power from shore (OGP) development, a new compressor module in installed at the field centre and a power cable laid from the coast.
The cost increase over the past year is NKr1.2 and since the PDO, it is about NKr2.5Bn, as a result of longer delivery times for new transformers that were destroyed in a fire at Hitachi’s factory in Vaasa in 2023. Planned commissioning has been postponed from 2026 to late 2027.
Equinor operated projects included in the Norwegian national budget:
- Breidablikk
- Gina Krog alternative oil export
- Halten Øst
- Johan Castberg
- Kristin Sør phase 1
- Oseberg gas phase 2 and power from shore
- Sleipner power from shore
- Troll Vest electrification
- Irpa
- Verdande
- Snøhvit future
- Njord electrification
- Eirin
Completed projects
- Breidablikk
- Sleipner power from shore
- Kristin Sør phase 1
- Troll Vest electrification
- Gina Krog alternative oil export
- Northern Lights
Join the discussion - the Annual Offshore Support Journal Conference, Awards & Exhibition 2025 will be held in London on 4-5 February 2025. OSJ is the world’s largest forum for vessel owners, operators, shipbuilders, charterers and suppliers across the global OSV sector. Use this link to get tickets and join this prestigious event.
Related to this Story
Events
Maritime Regulations Webinar Week
16 Dec 2025
GMT - ONLINE
Floating energy: successfully unlocking stranded gas using FLNGs and FSRUs
24 Feb 2026GMT - ONLINE
© 2026 Riviera Maritime Media Ltd.
