(Adds forecasts)
STAVANGER, Norway, Jan 12 (Reuters) - Oil and gas outputfrom Western Europe's top producer Norway will be higher thanpreviously expected in 2017 and 2018 following above-forecastoutput last year, the Norwegian Petroleum Directorate (NPD)predicted on Thursday.
At the same time the regulator cut its forecast for theindustry's investments in 2017 and said it would continue todecline in 2018 before a predicted rebound the following year.
Oil production for 2017 is now expected to hit 93.9 millioncubic metres, corresponding to 1.62 million barrels per day andin line with 2016, against a year-ago forecast that output wouldfall to 87.3 million cubic metres in the current year.
Gas production for 2017 is seen at 114.5 billion cubicmetres (bcm), down from 116.8 bcm in 2016, but much higher thanthe forecast a year ago of 107.9 bcm.
NPD said forecasts were revised up because the fields,through efficiency measures, particularly within drilling ofwells and regularity on the facilities, produced more thanpreviously presumed.
The directorate also expects several projects to startproduction earlier than previously anticipated, it added. (Reporting by Nerijus Adomaitis, editing by Terje Solsvik andStine Jacobsen)