Statoil will see its cash flow for this year lowered by more than £55million after Norway announced yesterday it would raise taxes for the country’s vast oil and gas sector.
In the future, energy firms will be able to write off only 22% of their investment costs from the special energy tax, down from 30% previously, increasing the financial risk of delays and cost overruns.
Statoil said the full impact of the tax change would be felt in four to five years, although it did not estimate how much that would reduce cash flow by.
The company also said the change reduced the predictability of the Norwegian framework for oil companies – the main draw for investing in the high-tax country – and made the development of small oilfields less attractive.
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