Norwegian Companies Strike Deal to Reduce Costs, But Problems Remain

Norwegian companies and suppliers agreed on new practices for establishing contracts, reportedly aimed at decreasing costs and promoting competitiveness. 

"These contracts contribute to lesser costs for each company winning contracts and for operators giving contracts," Karl Eirik Schjoett-Pedersen, head of the Norwegian Oil and Gas Association, told Reuters on Tuesday. 

This comes in a moment Oslo is reducing investments and also public pension funds are mulling divestments. 

Earlier this week, Norway’s Green Party said it is piling pressure on Oslo’s $9.3 billion pension fund to sell all its fossil-fuels assets.

After Russia, Norway is the second largest supplier of natural gas to the EU. 

Last week, Norway told the European Union it lacked a clear energy strategy, adding that this shortfall will reduce the willingness of investors to commit to investments in new pipelines and fields.