Oil/gas investment in Norway will rise more this year and decrease less in 2021 than predicted some time ago, an industry survey by the statistics office (SSB) revealed on Thursday.
Petroleum businesses, including Equinor, have actually revived a few tasks after the Norwegian parliament in June granted tax incentives to spur investment and protect jobs after a collision in oil prices sparked by the commencement of the pandemic that is COVID-19.
Investments in the country’s main sector that is economic now projected at 184.6 billion Norwegian crowns ($20.7 billion), up from the 180.3 billion crowns forecast in May, SSB said, or more from 177.6 billion crowns in 2019.
Next year, however, investment is anticipated to decrease to 148.6 billion crowns, compared using the view that is previous of billion crowns, SSB added.
Analysts at Handelsbanken said the expected drop year that is next dampen Norway’s general economic recovery, while DNB Markets said it reflected a shortage of big oilfield projects to develop in the years ahead.
The figures for the year that is next still be revised up, with oil businesses planning a few smaller developments, including Equinor’s Breidablikk and Aker BP’s Frosk, SSB stated.
Tasks approved by the last end of 2022 qualify for tax breaks that shield a greater part of income.
Norwegian Oil and Gas, an industry association that lobbied for the income tax cuts, said the updated forecasts were proof that the package was having a impact that is positive.
But while oil organizations will invest more overall on field development, drilling for new reserves appeared to be declining, SSB said. Oil/gas investment in Norway will rise more this year and decrease less.