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OSLO, June 4 (Reuters) - Norwegian oil and gas investment, a
key economic driver, is now expected to decline sharply in 2021
after rising less than previously anticipated this year, an
industry survey by the national statistics agency (SSB) showed
on Thursday.
The closely watched forecasts, based on data from oil
companies working in Norway, show 2020 investment plans have
been cut to 180.3 billion Norwegian crowns ($19 billion) from
185.4 billion seen in February.
In 2019, investment stood at 177.5 billion crowns, SSB said.
Next year, investment in Norway's oil sector is now
projected at 145.6 billion crowns, compared to a forecast of 152
billion three months ago, SSB said.
The price of North Sea oil hit two-decade lows in April as
coronavirus lockdowns and travel restrictions sharply reduced
demand for fossil fuels, but have since recovered some losses as
major producing nations agreed to cut their output.
Oil companies, including Norway's state-controlled Equinor
, have said they intend to reduce both operating and
capital spending in order to preserve cash during the downturn.
A planned tax cut currently making its way through
parliament could lead companies to sanction more projects by
next year however, the statistics agency added.
"Therefore, it is not unlikely that the decline for 2021
will be less severe than what is indicated in this survey," SSB
said.
($1 = 9.4754 Norwegian crowns)
(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)
