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Norway is likely to boost its oil investments to Nkr1.5 billion ($256 million) in an aim to exploit the country's northern region. In 2011 Norway has decided to increase its oil investment expenditure by Nkr190 million from last year after the recent discoveries in the Barents Sea. The Nordic country aspires to invest Nkr1.5 billion ($256 million) into the development of the northern region through the creation of a new petroleum complex to stimulate the local economy. The new expenditure under the next year's budget will include Nkr164 million for review of hydrocarbon resources in the northern sea areas, a jump of Nkr45 million from previous year. The maritime border treaty with Russia, Skrugard and Norvarg discoveries and opportunity of a vast tract in the southern Barents has invigorated the optimism about northern Norway's economy. The increased expenditure will be applied for mapping, intelligence gathering and impact assessments of the northern oil and gas region. Since, Russia has agreed to greater use of its border with Norway, gathering information from the north will now be easier than before. The planned investment in oil will be classified according to the expertise anticipated to collect information. Nkr260 million will be used for intelligence gathering while Nkr84 million will be spent on seismic work in the Nordland IV and V areas, collecting data in the northeast Norwegian Sea and impact assessment studies of the area in the region of Jan Mayen island and the south-east Barents Sea. The region of Jan Mayen Island and the southeast Barents Sea will also involve an additional Nkr84 million of investment for seismic survey purposes. The mapping of these areas and the impact assessment results would provide a clear picture of the resource potential to the Norway government who plans to unlock these areas for exploration and production purposes. The Jan Mayen is an important part of the petroleum activities since it will bring forward results for further petroleum activities in the region, which were not considered before. Intelligence gathering in the Nordland areas have also started on a huge scaled though environmentalists have been opposing the idea of drilling fearing the ecological impact on the region. New seismic would also be carried out to find out prospective hydrocarbon resources in the area. The recent increase in oil investment is expected to bring Nkr150 billion this year, an increase of 12.5% from 2010. Revenues from oil and gas sector are expected to top Nkr341 billion aimed to pump the 2012 Norway finance budget. Almost 50 companies are active in the country's continental shelf, projecting a high exploration activity in the coming years followed by increased revenues. The author is an experienced journalist in oil related fields, who regularly writes articles related to oil prices & indexes and crude oil including tips on investment in oil. Please visit oil.com for more details.
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