Energy giant Equinor's plans to spend nearly $5bn to reduce emissions from its offshore oil & gas operations off Norway by 40% by the end of the decade are at risk of being shelved unless the Nordic country’s government affords immediate tax relief for companies hit hard by the collapsing crude price and the coronavirus pandemic.
Many oil & gas companies have signalled that they will not be able to make capital available to prioritise marginal projects while crude is hovering at below $30/barrel, unless they get tax deductions now and a special tax uplift for an interim period of three years, according to people with knowledge of negotiations between the oil industry and Norway's government and parliament.
