OKEA’s activities generate significant value for society

Being a responsible operator of mature oil and gas fields is about more than production alone. It is about long-term resource management, high recovery rates and creating lasting value for society. An impact study conducted by Menon Economics shows that OKEA, despite accounting for just 1% of total production on the Norwegian continental shelf (NCS), generates substantial economic value, employment, and public revenues across Norway.

The study was commissioned to document the broader societal effects of OKEA, one of the smaller operators on the NCS. The analysis demonstrates that OKEA’s activities create significant ripple effects throughout the economy, both nationally and locally, through value creation, jobs and tax revenues.

Significant ripple effects

In 2024, OKEA produced approximately 15 million barrels of oil equivalent (boe), representing approximately 1% of Norway’s total oil and gas production. This activity supported approximately 2,200 jobs nationwide. Of these, 496 people were directly employed by OKEA; around 900 worked for suppliers delivering goods and services directly to OKEA; and a further 800 jobs were created through indirect ripple effects in the wider supplier industry.

Employment effects are distributed across all Norwegian counties, with the largest impacts in Vestland, Rogaland, and Oslo and Akershus, underscoring the importance of OKEA’s operations for regional value creation and industrial activity.

NOK 3.7 billion in tax revenues in one year

The study shows that OKEA’s activities generated approximately NOK 3.7 billion in tax revenues to the Norwegian state in 2024.

  • Nearly NOK 3 billion came from taxes on profits from OKEA’s oil and gas production
  • Around NOK 200 million came from income tax paid by OKEA’s employees
  • Approximately NOK 550 million came from taxes generated through OKEA’s purchases of goods and services, primarily from suppliers and sub-suppliers

These revenues directly finance public services and welfare, as well as long-term savings through the Government Pension Fund Global (the Oil Fund). According to the study, annual tax revenues from OKEA’s profits alone are sufficient to cover pension costs for approximately 10,000 pensioners, representing all pensioners in Stavanger municipality.

Extending field life creates value 

OKEA is specialised in extending the lifetime of mature fields and increasing recovery from existing infrastructure. This contributes to higher overall recovery rates on the NCS, in line with Norwegian authorities’ long-standing objective of maximising value from existing resources.

Norway already has a recovery rate 10–15 percentage points higher than that of comparable regions, such as the UK, generating significant additional revenue for society. The study shows that a 10% increase in overall recovery rates on the NCS could add approximately NOK 900 billion in additional contributions to the Oil Fund, after costs, with a similar potential for future revenues from already discovered resources.

Lower emissions per barrel

Despite operating fields in a late production phase, OKEA’s fields Draugen and Brage have around 30% lower emission intensity than the NCS average, which itself is significantly lower than the global average. The planned electrification of Draugen, scheduled for 2028, is expected to reduce production emissions to near zero.

The study also highlights that extending the lifetime of existing fields reduces emissions per barrel by spreading investment-related emissions over a longer production period. Combined with electrification, extended production enables more efficient resource utilisation with a lower climate footprint per unit produced.

Creating value today – and for the future

The Menon Economics study clearly shows that even a relatively small share of production can have a significant impact. Through extended field life, high recovery rates, low emissions intensity, and strong ripple effects across the economy, OKEA contributes to value creation, employment, and public revenues, benefiting both today’s society and future generations.

 

Looking ahead – value creation on the NCS

The Norwegian continental shelf is entering an important phase. The potential for further value creation remains substantial, but success increasingly depends on managing resources more intelligently and efficiently than before. From OKEA’s perspective, the future lies in unlocking opportunities in mature areas, maintaining active exploration programmes, and developing discoveries close to existing infrastructure.

A large share of fields on the NCS are now in mid- to late-life phases, an area where OKEA’s core expertise lies. Significant remaining resources can still be recovered, provided operators apply the right approach: short decision-making processes, strong cost discipline, and close collaboration with the supplier industry to deliver efficient, high-quality solutions.

For OKEA, the future on the NCS is built on three pillars:

First, extending the lifetime of existing fields through targeted drilling and continuous improvements. Both Draugen and Brage are clear examples of how mature fields can continue to produce safely and efficiently when the right investments are made. This approach will be further strengthened by projects such as Bestla (Brage), Talisker (Brage), and Garn Vest Sør (Draugen), which are critical to the assets’ long-term future.

Second, developing new opportunities close to existing infrastructure. Bestla, which will be tied back to Brage, demonstrates how small and mid-sized discoveries can be realised quickly and cost-effectively, while generating significant ripple effects for the region.

Third, continuing to explore. OKEA believes in exploration on the NCS, focusing on discoveries that can be tied back to existing platforms and pipelines. This enables high resource utilisation and lower CO₂ intensity per barrel.

The future of the NCS is therefore not an either–or proposition. It is a landscape in transition, where the right companies can create substantial value for decades to come. OKEA intends to be a driving force in this development by extracting more from existing fields, developing new opportunities, and ensuring that the NCS remains a vital source of energy, industrial activity and jobs for Norway.

Read the full impact study here (in Norwegian).