The Norwegian government disappointed its oil major by presenting...
The Norwegian government presented its revised national budget for 2004 and White Paper on petroleum activities, where some adjustments in petroleum taxation were proposed. The paper has disappointed oil major Statoil, because the government has only met the oil industry's wishes to a limited degree in its proposal for tax changes.
"The proposed changes are a step in the right direction, but with the proposal which has now been presented it will be difficult to secure an optimal utilization of resources and value creation on the Norwegian continental shelf," comments Statoil?s CEO.
The group still has great faith in the Norwegian continental shelf (NCS), both in terms of opportunities for new finds and improved recovery from producing fields. Its aim is to continue to develop projects which will be profitable for its owners and the Norwegian community.
The industry's own tax proposal did not entail tax relief, but incentives to implement projects which will not be realized with the current frame conditions. This could have led to more projects being realized, with opportunities for increased value for the community and owners. Lower levels of activity may lead to a further reduction in the number of jobs in the petroleum industry in the future. Supplier companies will be the first to notice a decline in activity.
Statoil said that the proposal put forward by the industry would have helped increase overall activity and value creation, which in turn would mean increased tax revenues.
