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EurOil: Norwegian producers expand investments amid high prices, tax incentives

Norwegian oil and gas companies have increased their projections for investment in 2022, eager to exploit the remaining time available for projects to receive tax incentives, the country’s statistics office said on November 17.

Producers are now expected to invest NOK175.3bn ($17.4bn) in the country’s offshore oil and gas fields this year, versus an August forecast of NOK172.8bn. Investments next year are currently projected to amount to NOK149.7bn, up from a previous forecast of NOK135.3bn, and the sum will rise further as more projects are approved.

The statistics office only includes projects where operators have filed a plan for development and operation with authorities. 

In the midst of the coronavirus (COVID-19) pandemic, Norway’s parliament approved a $11bn tax support package for the oil and gas industry, aimed at ensuring that investment in new supply continued in spite of the then low prices. Operators have praised the support, citing numerous projects that went ahead in the past two years as a result.

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