Deals
Big Oil Slipped ‘Poison Pill’ as Norway Seeks to Limit Exodus
- Norway warns full exit is no shield against shutdown costs
- Executives split on impact, while asset prices could fall
Apparatus for deepwater drilling is seen aboard an oil rig after re-fitting in Olensvag, Norway.
Photographer: Kristian Helgesen/BloombergThis article is for subscribers only.
As one oil major after the other considers leaving Norway, the alarm bells are sounding at the country’s Petroleum and Energy Ministry.
Officials companies this month that they could be on the hook for the billions of dollars it costs to close oil fields even if they sell their entire local subsidiary, a liability previously limited to individual assets. That would guard against sticking taxpayers with the bill if the smaller, more vulnerable producers taking their place are unable to cover the eventual expenses of removing platforms and installations.