Norway Looks for Solutions to Promote Drilling Capacity from Floating Rigs

Norway’s government could promote energy law changes in order to align exploration costs with neighbour countries, aware of the rising importance of legislation for production from floating rigs.

“That is one of the thing we need to consider. The need for drilling capacity from floating rigs will become even greater,” Petroleum and Energy Minister Tord Lien told Bloomberg on Monday.

Costs are an open wound in Norway. The Scandinavian country differs from many other Western countries, with a higher proportion of costs stemming from labour force.

According to a government-commissioned report concluded in 2012, drilling costs in Norway are 45% higher than the ones in the United Kingdom. In order to slash labour costs, Oslo would need to find a difficult compromise with unions.