Gives a good basis for activity

The temporary changes to the tax regime for the Norwegian petroleum industry which have been agreed by a broad majority of the Storting (parliament) provide a good basis for activity and will safeguard jobs.

Major challenges related to the coronavirus epidemic and turmoil in oil markets are being faced by Norway’s oil and gas companies. Without measures being adopted, this uncertainty would now mean that many projects must be postponed or cancelled.

That would in turn mean a dramatic reduction in activity, employment and value creation nationwide. For the supplier industry, in particular, such conditions would mean the loss of important jobs and expertise.

“We give all credit to the government and the parties in the Storting for their dialogue with the industry and their willingness to find solutions,” says Knut Thorvaldsen, acting director general of the Norwegian Oil and Gas Association.

“The compromise reached will improve liquidity and profitability. That provides a basis for maintaining activity at a very uncertain time. The companies now have an opportunity to realise projects which have been postponed. In sum, the proposal will create great activity in coming years.”

He explains that Norwegian Oil and Gas presented the proposals on behalf of a united industry and a very broad alliance. “The purpose has been to safeguard jobs and forward-looking expertise. The industry will now continue to accept responsibility at a demanding time. It’s particularly important that jobs are secured and that the supplier industry obtains viable terms.”

An important element in the discussion has been to preserve expertise and projects related to low-emission solutions.

“The oil and gas industry has a crucial role to play in realising the climate goals, and a number of the projects currently being pursued relate to emission reductions,” Thorvaldsen observes.

 The tax scheme is scheduled to be approved by the Storting on 12 June.

 For further information, contact

Tommy Hansen, director communications, Norwegian Oil and Gas Association, mobile +47 909 58 450