Norway's oil companies have increased their 2017 investment plans in the last three months, signalling a smaller-than-expected contraction for the industry, a survey by the statistics office showed on Thursday. Investments in oil and gas extraction and pipeline transport were still expected to fall for the third year in a row as companies cut the spending after oil prices fell by more than 50 percent over the last two-and-a-half years.
The country's oil companies now plan to invest 149.4 billion crowns ($17.87 billion) next year in oil and gas extraction and pipeline transport, 1.9 percent more than the 146.6 billion crowns seen last November but down from 163.3 billion in 2016. "The increase is mainly due to higher estimates for field development, fields on stream and shutdown and removal," Statistics Norway said in a statement.
The numbers were helped by some removal projects being postponed from the fourth quarter to 2017, it added. The 2017 forecast should be viewed as positive news for the economy, Nordea Markets economist Erik Bruce said, adding it was probably 4-5 percent ahead of the central bank's forecast when measured in inflation-adjusted terms.
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