Prospects for the Norwegian oil and gas industry are not looking good this year, according to experts.

Research by sector analysts Wood Mackenzie, warns that cuts in oil and gas exploration and development will be substantial. This follows the drastic fall in the price of oil towards the end of 2014.

Dr Malcolm Dickson, Principal North Sea Analyst for Wood Mackenzie said: “…2014 was actually a lacklustre year for exploration. Despite 44 exploration wells being drilled, there were only four discoveries that we would class as commercial – or likely to be developed.”

The analysts said creating value from the deals done in 2014 would be more of a challenge this year.