The Norwegian government expects the country’s oil production to rise by 15% in 2023, compared to 2022. Oil production is forecast to rise to 131 mcm in 2023 (2.26 mb/d), from 114 mcm expected in 2022. The rise in expected production is explained by Norway’s Johan Sverdrup oil field, which is set to ramp-up output by the end 2022 from 535,000 bbl/d to 755,000 bbl/d by the end of 2022. On the other hand, natural gas production is forecast to decrease slightly (by less than 1%) to 121 bcm in 2023 from an expected 122 bcm in 2022.
In addition, the Norwegian government plans to raise taxes on the country’s oil and gas industry by NOK2bn (US$191m) in 2023 by partly reversing an incentive package introduced during the coronavirus pandemic. The proposal reduces the uplift rate, a special tax deduction, to 12.4% from 17.69%. In 2021, Norway’s oil production stood at 2.02 mbl/d and its natural gas production stood at 119 bcm.