NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

Norway to examine competition conditions in oil industry

Published 20/07/2016, 21:27
© Reuters. Oil and gas company Statoil gas processing and CO2 removal platform Sleipner T is pictured in the offshore near the Stavanger
BP
-
NHY
-
EQNR
-
AKRBP
-

OSLO (Reuters) - Norway's competition watchdog will look into whether competition rules are being infringed in its oil industry, the industry ministry said on Wednesday.

The ministry has asked the competition authority to provide a general description of competitive conditions for oil companies and their suppliers to answer a question from a member of parliament, it said.

The question from the lawmaker is whether oil firm Statoil (OL:STL), which is responsible for 60 percent of Norway's oil and gas output, misuses its dominant position over suppliers, the ministry said.

"It is natural to prepare a political discussion about competition conditions on the Norwegian continental shelf on a good factual basis, both on the competition situation and whether us politicians can, or should, do something about it," Industry Minister Monica Maeland said in a statement.

The statement did not say how long this would take.

Last month, BP (L:BP) and independent oil firm Det norske (OL:DETNOR) agreed to merge their Norwegian business in a $1.3 billion all-share deal, partly to counter Statoil's dominant position in the sector.

Statoil said it had a common interest with others to have a competitive industry that featured many actors, that it had brought in new operators on the Norwegian continental shelf, and it was responsible for a lesser share of total production than when it merged with the oil arm of Norsk Hydro (OL:NHY) a decade ago.

"We work closely with the suppliers' industry to do the necessary improvements to make operations more effective, simplify, standardise and industrialise," a Statoil spokesman said.

© Reuters. Oil and gas company Statoil gas processing and CO2 removal platform Sleipner T is pictured in the offshore near the Stavanger

"To cut costs is a part of ensuring competitiveness," he said, adding that Statoil would help Norwegian authorities if they wanted information from the company.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.