Norway Oil and Gas Epc Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Norway Oil and Gas Epc Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global market for oil & gas EPC is expected to grow at a CAGR of more than 5.35% during the forecast period of 2020 – 2025. Major factors driving the market studied are the increasing investment in the oil and gas exploration fields, and the expansion of cross countries pipeline infrastructure are expected to drive the studied market during the forecast period. However, surge in the transportation of oil and gas via. the alternate mode of transportation is likely to reduce the investments in the development of pipeline infrastructure and fluctuating oil and gas prices, which are anticipated to restrain the market for Norway oil and gas EPC in coming the years.

• Upstream to witness significant growth for the EPC market due to increasing exploration and production activites during the studied period.
• Around two-third of Norway’s undiscovered resources, especially gas, is estimated to lie in the Barents Sea. Development of these resources is expected to create ample opportunities in the natural gas infrastructure. This, in turn, is expected to create significant opportunities for the operating countries in the near future.
• Development of the new oilfields infrastructure is expected to drive the EPC market in the country.

• Norway oil and gas EPC market has been primarily driven by the upstream sector due to the increasing exploration and production activites in the Norway offshore region.
• In 2019, the investment in the Norwegian offshore oil and gas industry (excluding exploration) is expected to increase by 13%, to more than NOK 140 billion. A number of small projects received FIDs in 2017, as well as 2018, and are expected to during 2020.
• For instance, in October 2018, Equinor awarded fourth Sverdrup jacket contract to Kvaerner. The Norwegian oil and gas company, Equinor, awarded the jacket contract, for the processing platform for Johan Sverdrup phase 2, to Kværner, and the contract value is estimated to be around ~NOK 900 million. ​
• In December 2018, Norwegian oil and gas firm, Equinor, was awarded an engineering, procurement, and construction (EPC) contract to OneSubsea, a Schlumberger company. The contract is for an electric-actuated subsea boosting system for the Vigdis Field, in the Norwegian North Sea. Further, the scope of the contract includes a pump station, a pump module, topside equipment, umbilical, and all-electric controls with electric actuation.​
• Moreover, in February 2019, Wood has secured a new USD 13 million contract with Equinor to deliver engineering, procurement, construction, and installation (EPCI) services to the Vigdis boosting station increased oil recovery (IOR) project.
• The Barents Sea is growing in prominence with upgrades to undiscovered resource estimates, and the region thought to hold some 49% of Norway's potential resource. The country has untapped potential for undiscovered resources, which is expected to provide enormous opportunities for the market studied in the near future.

• The major oilfields in the country are reaching their maturity, and as a result, since 2016, the oil production of Norway has declined significantly. During 2016-2018, the oil production of the country had declined by about 8% and is expected to further decline by another 4.7% during 2018-2019.
• However, in the recent years, the country has made a number of major oil discoveries. In order to offset the decline in production from matured oilfields, the upstream oil and gas companies are investing heavily in developing these new oilfields.
• As a result of these investments, from 2020, the oil production of Norway is expected to reverse the trend and register significant growth, to reach 115.6 million sm3 per year, highest since 2009.
• Some of the major fields that are expected to attract investments during the forecast period are: the Johan Sverdrup oilfield has been the largest oilfield in the country, since 1980. The companies operating the field, i.e., Equinor, Lundin Norway, Petoro, Aker BP, and Total, have announced an increase in resource estimates.
• Hence, during the forecast period, the investments in new oilfields are expected to be the biggest and the most dominating driver for the Norway upstream oil and gas EPC market.

The Norway oil and gas EPC market is fragmented. Some of the key players are Aker Solutions ASA, John Wood Group PLC, TechnipFMC PLC, Subsea 7 S.A., and WorleyParsons Limited.

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