Statoil ASA, Norway’s biggest energy company, canceled plans to build a pipeline tying the Kristin natural-gas field to the planned $4 billion Polarled tube in the Norwegian Sea because of costs and volume uncertainties.
Plans to force the owners of Norway’s biggest oil discovery in decades to power three other offshore fields from land in order to reduce carbon emissions threaten investment in the industry, the government said.
Oil and gas companies can expect little help from Norway on tackling surging costs as the government of western Europe’s biggest crude producer tones down plans for measures that producers hope will boost earnings.
Statoil ASA and Eni SpA are among companies with plans to drill a record number of wells in Norway’s far north this year to help the world’s second-largest gas exporter to sustain output. So far, they’ve struck out.
Norwegian lawmakers are increasing pressure on Statoil ASA and other companies to power four North Sea fields from land, risking further delays to the development of the biggest oil discovery in decades.