ConocoPhillips (COP) is putting serious money into Norway's offshore gas fields. The energy giant announced Friday that its subsidiary, ConocoPhillips Skandinavia AS, and partners have signed off on the final investment decision for the Previously Produced Fields (PPF) Project in the Greater Ekofisk Area.

The move comes as European energy security remains front and center, and ConocoPhillips is betting big that subsea infrastructure can deliver returns while meeting continental demand.

Breaking Down the Investment

The PPF Project carries a total price tag of roughly $1.8 billion, split between two license areas. ConocoPhillips expects to invest around NOK 14 billion (about $1.3 billion) for PL018B/F and approximately NOK 5.5 billion (roughly $500 million) for PL044/D.

Here's what that money buys: 11 wells and four brand-new subsea templates, all tied back to the existing Ekofisk Complex through a shared multiphase pipeline. The setup is designed to extract gas from fields that have already been producing, squeezing more value out of known reserves. First gas is scheduled for the fourth quarter of 2028.

Development and operation plans for both license areas are expected to hit the desk of Norway's Ministry of Energy in the first quarter of 2026. The project still needs final regulatory approvals after those plans are submitted.

Steinar Våge, president of Europe, Middle East and Africa for ConocoPhillips, framed the decision around economics and geopolitics: "Our focus is on projects with low cost of supply and increased gas delivery to Europe. We are advancing our near-field resource strategy with subsea developments in the GEA, and we value our license partners' support for the PPF Project."

Recent Financial Performance

The approval comes on the heels of a tough earnings report last week. ConocoPhillips posted fourth-quarter fiscal 2025 earnings of $1.17 per share, down from $1.90 per share in the same quarter a year earlier.

Adjusted earnings per share came in at $1.02, missing the analyst consensus of $1.11. Earnings dropped 39% year over year, pressured by lower commodity prices during the quarter. Revenue of $14.185 billion also fell short of the $14.194 billion consensus estimate.

Looking ahead, ConocoPhillips expects total production between 2.33 and 2.36 million barrels of oil equivalent per day (MMBOED) for the year, with first-quarter production projected at 2.30 to 2.34 MMBOED.

COP Price Action: ConocoPhillips shares were up 0.57% at $111.46 at the time of publication on Friday. The stock is trading near its 52-week high of $111.98.