Daily Management Review

Norway shuts the door for foreign Oil and Gas investors


05/30/2017


Norway is trying to take new measures to prevent foreigners from increasing their share in offshore fields in the country. Apparently, this move is aimed at Russia, whose interest in Norwegian oil and gas projects has grown recently, Bloomberg reports.



Michael Spiller
Michael Spiller
In recent proposed changes to the sectoral regulations, the Norwegian government on grounds of national security has toughened the possibility to reject applications from non-European entities in terms of acquiring licenses to develop offshore oil and gas fields. 

"I would interpret this as a desire to create a more secure legal framework for imposing restrictions on foreign ownership", Ivar Alvik, a professor of law at the University of Oslo, said in a telephone interview.

Norway is struggling with accelerating changes in the ownership of the oil industry, which is under the pressure of the oil prices collapse, as well as the transition to renewable energy sources and a reduction in resources.

BP and Exxon Mobil abandoned the role of field operators in Norway, and large utility companies such as RWE sold their local oil and gas companies. Smaller, more specialized companies, often supported by private equity, are gathering their positions, and Russian companies are among those who want to move to the country.

According to Arild Moe, senior research fellow at the Fridtjof Nansen Institute in Oslo, the changing composition of companies raises concerns about the financial power of newcomers and stimulates questions about more strategic issues such as protecting the entire natural gas supply system in Norway.

"This is an infrastructure with a high strategic importance", he said, "this concerns very strong economic interests both in terms of access and knowledge of how this works." 

The Norwegian Ministry of Oil and Energy reported that this change puts the country in line with the rest of Europe. The provision of national security exists in the European directive, but Norway did not include this point when in the 1990s, the document was adopted in the national legislation. Norway is not a member of the European Union, however it adopts a number of the most important EU legal norms, since it has access to the single European market.

source: bloomberg.com






Science & Technology

Scientists Discover Largest Ever Under Water Volcanic Eruption Near New Zealand

Bitcoin craze increased load on the power grid to the maximum

PC And Server Performance Slows Down Due To Security Patches For Chip Flaws, Says Microsoft

Cybersecurity Firm Claims Cryptocurrency Monero Might Be Getting Funneled To North Korea University

The Way We Travel Will Be Changed by The Colorless, Odorless Gas - Hydrogen

EU's Big Change In Data Protection Rules Makes Businesses To Get Ready For It

Artificial Intelligence Helps NASA Find An 8th Planet In Orbit Of A Distant Star

Australian Research Success Could Mean Shatterproof Cell Phones Could Soon Be A Realityv

Top ten hi-tech events of the year

Tesla Considering Designing And Developing AI Chips On Its Own To Support Its Auto-Pilot Project

World Politics

World & Politics

Failure Of Last Ditch Effort To Secure Funding Results In A Partial Shutdown Of US Government

About 700,000 U.S. Twitter Users Reacted To Kremlin-Linked Trolls, Says Twitter, To Inform Users Directly

2017 Was Second Warmest Year Since Records Were Kept And It Had No El Nino Effect

France and Germany want to reform the eurozone

Take and go away: new approach to refugees in Europe

Both The Korean Countries Will Come Together In Olympic Talks

Parties of Germany agreed on the migrants problem

Munich Re: Natural disasters caused record damage in 2017