Norway oil exploration reduction expected / News / The Foreigner

The Foreigner Norway oil exploration reduction expected. 2014 is set to see a noticeable reduction in oil exploration, a new Statistics Norway (SSB) report indicates. The news comes despite that expectations investment in the Norwegian offshore sector will be very high this year. SSB’s figures indicate 2014 will see this predicted exploration investment decrease to be down NOK 4.5 billon (about USD 781.58 million/EUR 583.91 million/GBP 500.96 million) – to NOK 30.9 billion (some USD 5.35 billion/EUR 4.01 billion/GBP 3.43 billion) – from this year’s level.

norwayoil, oilexplorationinvestments



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Norway oil exploration reduction expected

Published on Tuesday, 18th June, 2013 at 15:18 under the news category, by Asgeir Ueland.

2014 is set to see a noticeable reduction in oil exploration, a new Statistics Norway (SSB) report indicates.



The news comes despite that expectations investment in the Norwegian offshore sector will be very high this year.

SSB’s figures indicate 2014 will see this predicted exploration investment decrease to be down NOK 4.5 billon (about USD 781.58 million/EUR 583.91 million/GBP 500.96 million) – to NOK 30.9 billion (some USD 5.35 billion/EUR 4.01 billion/GBP 3.43 billion) – from this year’s level.

Nordea Markets economists have predicted a decrease of about four per cent next year, which they say is due to high investments this year, business daily Dagens Næringsliv also reports.

Chief Handelsbank economist Knut Anton Mork, of Handelsbanken, warned in today's paper that it has become "dangerously expensive to develop Norwegian fields."

Hitherto the oil companies have been able to write off great parts of their investments in searching for oil and gas against tax. However, the government has recently signaled the tax rate is being increased by one per cent.

Statoil postponed development of the Barents Sea-based Johan Castberg field after being faced with a potential higher multi-billion kroner bill.

Today’s numbers are very much in line with predictions made by the banks, and thus come as little surprise to the people who follow the offshore sector closely.

However, decreased activity may mean onshore companies supplying services to the offshore sector will probably see a reduction in deliveries from now on forward, Mr. Mork added. 



Published on Tuesday, 18th June, 2013 at 15:18 under the news category, by Asgeir Ueland.

This post has the following tags: norwayoil, oilexplorationinvestments.





  
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