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This platform will provide 3 000 work-years in a difficult time

Construction of Aker BP’s new Hod platform will provide many jobs along the Norwegian coast. This is one of the projects which could be realised as a result of the petroleum industry’s tax proposal.

Hod was due to be sanctioned in March, just before the coronavirus crisis hit the country. It ranks as a “small” project for the oil industry. Its price tag of NOK 5 billion is just over mainland  Norway’s biggest investment of recent decades – Hydro’s aluminium plant at Karmøy north of Stavanger.

However, the Aker BP project has now been put on hold as a result of the present difficult times.

But it can be revived – and quickly. With simple measures, jobs can be created instead of having to lay off good employees or make them redundant.

The solution for saving jobs and maintaining activity in the oil and gas sector is already on the table, and has support from both unions and industry.

The Norwegian Oil and Gas Association’s proposal to the government is that some of the tax due to be paid by the companies on new projects such as Hod be deferred. That will make projects in Norway competitive, and protect Norwegian jobs. The deferred payments will be made later, with interest.

This proposal will therefore cost government and society nothing, but will safeguard jobs when they are most needed.

Read questions and answers on the tax proposal here.