Norway's production of oil liquids is expected to rise by 15% in 2023 as the Johan Sverdrup field is set to ramp-up output by the end of this year, the government's draft budget showed on Thursday.

"The Norwegian continental shelf must continue to be a stable and long-term supplier of oil and gas to Europe at a very demanding time," the government said.

Natural gas output from Europe's largest supplier was meanwhile seen at 121 billion cubic metres (bcm) next year, compared with 122 bcm expected in 2022, the document showed.

The Nordic country became Europe's top gas supplier after Russia cut its exports, while crude oil from Johan Sverdrup is helping to replace Russian Urals ahead of an EU ban.

Norway's full year production of oil liquids - crude oil, condensate and natural gas liquids (NGL)- is seen rising to 131 million cubic metres (mcm) of oil equivalent, or 2.26 million barrels per day, from 114 mcm of oil equivalent in 2022.

The Equinor-operated Johan Sverdrup field in the North Sea is expected to start production from its Phase 2 development in the fourth quarter, boosting production capacity by some 220,000 barrels of oil equivalent per day.

Norway's total production of oil liquids and natural gas is expected to hit 4.3 million barrels of oil equivalent per day next year, the government said. (Reporting by Nerijus Adomaitis, editing Terje Solsvik)