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Statoil warns against Norwegian tax move

Statoil says a proposal by the Norwegian government to lower an allowance against the special petroleum tax would hurt the allure of future offshore projects.

The government proposes to lower the rate of the allowance, called uplift, to 5.5% from 7.5%. The special petroleum tax applies at the rate of 50% to profits from petroleum production and pipeline transportation on the Norwegian continental shelf.

It applies in addition to a standard 28% income tax.

“The proposed change in the Norwegian petroleum tax reduces the attractiveness of future projects, particularly marginal fields, and raises questions regarding the predictability and stability of the fiscal framework for long-term investments on the Norwegian continental shelf,” said Torgrim Reitan, Statoil chief financial officer.

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