Norway’s Conservative Government Likely to Reduce Stake in Statoil

The results of the elections in Norway pave the way to a new strategy of the Scandinavian state toward Statoil, as the winning Conservative-led coalition expressed several times its intention to sell a minority stake in the company pumping more than 70% of Norway’s oil and gas. 

The Conservative Party won 48 seats out of 169 in Parliament in Monday’s election, while Labour Party won 55 seats, nine less than in the last election. 

Conservative Party leader Erna Solberg made clear her party's stance on Statoil. The new government won the elections promising to cut taxes and loosen governmental control on the economy. She said that a government under her leadership would have cut its stake in Statoil.

Norway, second country in Europe by GDP per capita after Luxemburg, currently holds 67% of the company. According to analysts, it is unlikely that the government would give up its control. This implicitly suggests that the government could sell up to 16% of the shares. The stake is currently valued at more than $11 billion.