Page 8 - EurOil Week 06 2023

EurOil COMMENTARY EurOil

Norwegian oil, gas flow to see big

boost from temporary tax regime

Norway’s supportive tax regime is great news for European oil and gas consumers.

NORWAY GENEROUS tax breaks that Norway has dealt Among the new projects in the pipeline are
out to its oil and gas industry will help boost the Aker BP’s Yggdrasil hub, due online in 2027,
WHAT: country’s energy supplies to Europe, Oslo-based Shell’s Phase 3 of Ormen Lange, set to start up
Norway introduced Rystad Energy wrote in a recent insight piece. in 2025 and Equinor’s Irpa, slated for launch in
temporary tax relief in Norway is now Europe’s top gas supplier fol- 2026. These three projects “will be particularly
2020. lowing a drastic cut in Russian piped deliveries significant in maintaining a steady high flow of
over the past year. The country has seen a record gas from Norway to Europe,” Rystad said.
WHY: number of new projects sanctioned recently, Liquids output will also be sustained mov-
The regime was designed with 35 in only the last two and a half years, ing forward, which is good news at a time when
to spur investment during ensuring that it can further ramp up oil and gas Europe is looking to wean itself off Russian oil
the pandemic, and is now supplies in the coming years to its European imports. The bloc imposed an embargo on Rus-
ensuring a large project neighbours. sian seaborne crude supplies in early December.
pipeline that can ease Norwegian development spending is set Aker BP’s Yggdrasil, Equinor’s Breidablikk,
Europe’s energy crisis to skyrocket in the short term, Rystad Energy due online in 2025, and Var Energi’s Balder
over the coming years. said, with $42.7bn of greenfield investments Future, due to start production in 2024, will be
on the horizon. The new projects were sanc- the key contributors to new oil flow. However,
WHAT NEXT: tioned under a temporary tax regime that was most oil production will come from major fields
A steek climb in output to introduced at the height of the coronavirus that were sanctioned under the standard tax
more than 920,000 boepd (COVID-19) pandemic to ensure that invest- regime such as Johan Sverdrup, the second phase
in 2028 is forecast. ment continued. They will ensure that high gas of which was launched in December 2023.
production is maintained towards 2030, Rystad “Together, these projects have pushed back
said, offsetting decline at key existing producing the production decline on the Norwegian Con-
fields such as Troll, Oseberg and Aasta Hanstan. tinental Shelf [NCS] to 2028,” Rystad said. The

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