New oil projects create 100,000 new full time jobs

oil industry climateOil industry.Photo:

In 2017, plans for oilfield development plans have been delivered to a value of NOK 125 billion. Together, it means 100,000 new full time employment positions, according to calculations.


Oil and energy minister, Terje Søviknes of Fremskrittsparti (Frp) believes he has received the world’s coolest advent calendar. On average, he has received new plans for the development and operation of fields every third day this December.

‘This is a wonderful Christmas at the Ministry of Petroleum and Energy,’ he told NTB news.

The state council will not explicitly declare the oil crisis to be over, but believes that it has bottomed out.

‘Yes, it is obvious that we are now at a turning point,’ said Søviknes.

100,000 new jobs

On Tuesday morning another two oil companies trooped to the government office to deliver plans for the development and operation of oil fields on the Norwegian continental shelf. There will be another development plan delivered on Thursday, which will be the seventh so far this December.

Thus, 2017 can be summarised by ten plans for development, with investments totalling NOK 125 billion.

‘These projects will, in total, generate an employment effect of 100,000 jobs in Norway during the development phase. The investments will generate 100,000 jobs according to calculations from the companies,’ said Søviknes.

More contracts to Norway

He is particularly pleased that many of the contracts on the new projects have gone to Norwegian suppliers.

‘This is due to the fact that we have worked extremely well in the supply industry, and
have managed to become more competitive, managing to reduce costs,’ said Søviknes.

‘It’s just amazing for the supplier industry, that has seen tough years. Both big and small companies report that they are looking forward to 2018, and the coming years’, he added.

On Wednesday, Søviknes had one year in the chief seat at the Ministry of Petroleum and Energy.

‘I reflected on it this weekend. What a year it has been,’ he said.

Full speed up until 2020

Even though the arrows point upwards, not all has completely solved the industry yet.

‘There are still some segments in the industry that are tough, such as the rig market. But accordingh to the big picture, everything indicates that we have reached the bottom and are on our way up again’, said Søviknes

Norwegian oil and gas has expressed concern that activity in the industry will fall noticeably from 2021.

‘It looks very bright for 2018, 2019 and 2020, but slightly, by the 2020s it’s obvious that I would like to see some new findings,’ said Søviknes.

Ten plans

This year’s largest development plan came on December 5, when Statoil delivered the plans for the huge Johan Castberg field.

The planned start-up is 2022, and investment costs are calculated at 49 billion. Between 450 and 650 million barrels of oil equivalents are expected to be recoverable.

Additionally, plans for the following developments were delivered in 2017:

* Njord

* Bauge

* Ærfugl

* Vallhall Flank Vest

* Skogul

* Ekofisk vanninjeksjon

* Yme

* Fenja

* Snorre expansion

The latter three plans will be presented to Søviknes this week.

© NTB Scanpix / Norway Today