Regardless of the coronavirus-induced disaster, investments in oil and gasoline exercise in Norway are anticipated to rise by 1.6 % this yr in comparison with 2019, because of increased oil costs and the federal government’s tax aid bundle for the oil business, the most recent funding survey by Statistics Norway showed on Thursday.
Whole investments in oil and gasoline exercise in Norway in 2020, together with pipeline transportation, are estimated at US$20.57 billion (184.6 billion Norwegian crowns), up by 2.four % in comparison with the estimate within the earlier survey carried out in Could 2020. In contrast with the corresponding determine for 2019, oil and gasoline funding in Norway is now anticipated to extend by 1.6 %, the August survey confirmed.
For 2021, investments are set to drop from the at the moment estimated 2020 degree, however the estimate for subsequent yr is now 2.1 % increased than within the Could survey, in accordance with Statistics Norway.
Following the oil value collapse, Norway passed on the finish of April a bundle of measures to help the oil and gasoline business and the availability chain, together with by introducing short-term modifications to the taxation system to assist firms protect liquidity and proceed with their deliberate initiatives.
“To encourage exercise and safeguard jobs on this tough scenario, we’re proposing some short-term amendments. In observe, these will imply that tax payments are postponed and corporations’ liquidity is improved. It will allow oil and gasoline firms to make extra investments,” Minister of Finance Jan Tore Sanner stated on the time.
In keeping with estimates from Rystad Energy, the short-term tax aid bundle for the petroleum business is ready to enhance exploration and manufacturing firms’ short-term liquidity and scale back breakeven costs for future improvement initiatives by about 40 % on common. The help bundle will even assist Norwegian harsh-environment floater demand rise in 2020 and keep secure ranges within the years to return.
By Charles Kennedy for Oilprice.com
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