“We find the effects of the Norwegian tax relief package for the oil and gas industry to be limited. We are of course pleased to see the Hod field on the Norwegian Continental Shelf further developed, as we will deliver cranes to the project. But apart from that, the impact on the drilling sector is low,” said Rune Johnsen, CEO of NOV Norway.
Anniken Hauglie, CEO of the Norwegian Oil and Gas Association, said the tax relief package has been effectful for the industry in general.
“It has produced results in the areas in which it was supposed to produce results,” said Hauglie.
Along with the Mayor of Kristiansand, Jan Oddvar Skisland, Hauglie visited NOV Norway headquarters in Kristiansand Wednesday and was given a presentation of the company.
Globally, National Oilwell Varco employs more than 30,000 people in 635 locations in 67 countries.
At its peak, NOV Norway employed more than 5,500 people and sold offshore drilling packages worth billions of dollars. Following the downturn in the industry and amplified by the Covid-19 pandemic, the market for offshore drilling packages is close to non-existent. Consequently, the workforce at NOV Norway is reduced to approximately 1,300 people.
“We are focused on maintaining our core competence and would like to see stronger support schemes for research and development,” says Johnsen.
Today, major activities in NOV Norway are related to aftermarket operations, maintaining and supporting NOV manufactured rig equipment through parts, service and repair.
“We see a trend towards greener technology, especially from the Dutch, Danish and Norwegian sectors. This is an area in which we already have relevant products and services,” says Johnsen.
At the end of the meeting, Hauglie and Skisland were given a tour of the drill control simulator. In this virtual environment, both debuted as drill operators.
“I do not expect to be offered a job,” said Hauglie laughingly afterwards.