Train deal threatens to derail major oil investments
The Danish government has won support in parliament to raise taxes for seven oil companies operating in the North Sea, which have licences agreed before 2004.
The seven offshore operators will have their tax rate increased to around 62 percent of profit from around 35 percent. The higher tax will apply to U.S. company Hess, Germany’s Bayerngas, RWE Dea and VNG, Norway’s Noreco, and Danish firms Danoil Exploration and DONG Energy.
The tax increase will raise 28.5 billion kroner for investment in the nation’s rail infrastructure.
According to theCopenhagen Post, Bayerngas threatens to withdraw its planned investment after the government finalised a deal that will see higher taxes on oil companies pay for improving rail infrastructure.
The Danish tax minister, Holger K Nielsen (Socialistisk Folkeparti), stated in a press release
“I am very satisfied that we made this deal, which secures a more fair and sensible taxation of the exploitation of our common resources in the North Sea,”
“The deal creates a future security for businesses while also ensuring that the state earns a larger and more reasonable share of the North Sea assets.”
Image Credit: Hess
