I'm probably not the most accurate source of information, but I think I can help with that question:
There are still a couple of factions have people working on them behind the scenes, and yes, there are still people alive on the Norwegian faction.
I'm pretty sure you already understand this, but I'll clarify for those who don't:
Community factions are created and developed primarily by contributors. The communication between the core team and the comfacs can be sparse, so I wouldn't expect an accurate answer when you ask "is [x] faction still being worked on?". The truth is that nobody knows except for those who are working on it. When they're ready to make a reveal, they'll go out of their way to make it nice and obvious.
As for the Norwegian faction in particular, there is definitely some stuff in the works, but it still has a long way to go. Certain skills are still in high demand and the number of people possessing them are shrinking. In my opinion they're closer to completion than many other factions, but it isn't anything worth getting hyped up about just yet...
Community support goes a very long way. If enough people want something, chances are it won't go unnoticed.
My projection would be that the Syrian army and Polish forces will have been released by the time Norway is even close to being ready, but nothing is ever set in stone. There's always a chance that the whole team gets abducted by the mob and you never hear a word from them again. But hey, it can go both ways.
Can't hurt to be optimistic