Europe / Caspian / CIS

Country profile: Norway

Location:

Northern Europe, bordering the North Sea and the North Atlantic Ocean, west of Sweden

Climate:

temperate along coast, modified by North Atlantic Current; colder interior with increased precipitation and colder summers; rainy year-round on west coast

Terrain:

glaciated; mostly high plateaus and rugged mountains broken by fertile valleys; small, scattered plains; coastline deeply indented by fjords; arctic tundra in north

Size:

323802 sq. km total (Land area: 307442 sq. km Water area: 16360 sq.km)

Population:

4,644,457 (July 2008 est.)

Languages:

Bokmal Norwegian (official), Nynorsk Norwegian (official), small Sami- and Finnish-speaking minorities; note - Sami is official in six municipalities

Government:

constitutional monarchy

Capital city:

Oslo

Legal system:

mixture of customary law, civil law system, and common law traditions; Supreme Court renders advisory opinions to legislature when asked; accepts compulsory ICJ jurisdiction with reservations

Currency:

Norwegian krone (NOK)

Licensing:

Country profile

Norway is an advanced, highly-developed economy that has greatly benefited from the utilization of its hydrocarbon resources. In 2005, the country had a gross domestic product (GDP) of $295 billion, and a per-capita GDP of $64,000, which is one of the highest in the world. The Norwegian economy grew by 2.5 percent in 2005, and is forecasted to grow by 2.2 percent in 2006. Norway’s economy is highly dependent on its offshore oil and natural gas sector, which provides the government with its largest single source of revenue and the largest contribution to GDP. In recent years, high oil prices have made for government budget and current account surpluses, and rising disposable income.

Norway's dependence upon oil and gas revenues present long-term challenges for the country, especially because many industry analysts believe that North Sea oil and gas production has already reached or passed its peak. In particular, the country faces pension liabilities and other welfare obligations. In response to these challenges, the Norwegian government created the Petroleum Fund in 1990, later renamed the Government Pension Fund in 2005. A portion of annual oil and gas revenues flow into the Fund each year, which serves the dual purpose of buffering the short-term variations in oil revenues and providing a mechanism to transfer current wealth to future generations. The Fund, which holds a combination of cash, bonds, and shares, holds only international assets and stood at some $240 billion in March 2006.

The latest nationwide election in October 2005 had important repercussions for Norway’s future energy policy, because the largest coalition members (Labour and Socialists) disagree on whether or not to pursue exploration activities in the Barents Sea. In March 2006, the government presented its management plan for the Barents Sea. The plan allows new exploration in some areas of the Barents Sea, but it also places a moratorium on other, ecologically-sensitive parts of the region until 2010. In addition, the plan allows existing exploration activities in the Barents Sea to continue. With declining production from existing areas, Norway must explore these frontier regions in order to maintain oil and natural gas production in the long-term.

Energy production and consumption

Oil

Gas

Production:

2 million bbl/day (2005 est.)

83 billion cu m (2005 est.)

Consumption:

228,400 bbl/day (2005 est.)

5 billion cu m (2005 est.)

Exports:

3 million bbl/day (2005 est.)

78 billion cu m (2005 est.)

Imports:

91,930 bbl/day (2005 est.)

Reserves:

7 billion bbl (1 January 2006 est.)

2 trillion cu m (1 January 2006 est.)

Major fields:

Norway - recent news

19 Jan 26	Norway: Equinor and partners announce oil discovery in the Norwegian Sea (6507/8-12 S) Equinor and its partners have proven oil in wildcat well 6507/8-12 S in production licence 124 B. The well tested the 'Othello South' prospect, 4 kms north of the Heidrun field. The licensees will assess the discovery with a view toward further developing the northern part of the Heidrun field.
19 Jan 26	Norway: Lime Petroleum's Norway portfolio making good progress Lime Petroleum has provided an update on the portfolio of its subsidiary Lime Petroleum in Norway. Lime and its partners in the Yme Field have been offered participating interests in a North Sea licence, PL1279, in the 2025 Awards in Predefined Areas ('APA 2025') round in Norway. The licence contains the Vette discovery, which the licence partnership is looking to develop with the Yme Inspirer.
16 Jan 26	Norway: Norwegian Offshore Directorate has granted Equinor a drilling permit for wellbore 34/8-A-37 H in production licence 120. The Norwegian Offshore Directorate has granted Equinor a drilling permit for wellbore 34/8-A-37 H in production licence 120. Planned spud date is January 2026.
16 Jan 26	Norway: Vår Energi's appraisal well 7122/8-3 A confirms oil discovery in the Barents Sea (7122/8-3 A) Vår Energi's appraisal well 7122/8-3 A has confirmed the 7122/8-3 S ('Zagato') oil discovery in the Goliat area. The licensees are considering tying the discovery back to existing infrastructure on the Goliat field.
16 Jan 26	Norway: Vår Energi delivers successful well test results at the Goliat Ridge Vår Energi has announced the completion of the appraisal well with two production tests on the Zagato structure in the Goliat Ridge discovery in the Barents Sea, confirming reservoir quality and adding recoverable volumes.