Norway oil firms slash investment plans amid pandemic

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Norwegian oil and gas investment, a key economic driver, is expected to decline sharply in 2021 after rising less than previously anticipated this year, an industry survey by the national statistics agency (SSB) showed on Thursday.

A view of the Johan Sverdrup oilfield in the North Sea, January 7, 2020. Carina Johansen/NTB Scanpix/via REUTERS

The closely watched forecasts, based on data from oil companies, show 2020 investment plans have been cut to 180.3 billion Norwegian crowns from 185.4 billion seen in February, but still up from 177.5 billion in 2019. The price of North Sea oil hit two-decade lows in April as coronavirus lockdowns and travel restrictions sharply reduced demand for fossil fuels, but have since recovered some losses as major producing nations agreed to cut their output.

A planned tax cut currently making its way through parliament could lead companies to sanction more projects however, including the NOAKA, Eldfisk North, Grevling and Lavrans oilfield developments, the statistics agency added.

 

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