Norwegian energy giant Equinor is still actively considering a reduction of its 80% ownership of the UK’s Rosebank oilfield, the company’s CFO, Torgrim Reitan, told Reuters.
On the sidelines of the company’s second quarter results presentation, Reitan mentioned that Equinor prefers not to hold more than 80% ownership of any single asset.
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“Rosebank is a good and very profitable project. It is a process we are working on and there is progress,” he added.
The Rosebank project, which is expected to tap into one of the UK’s last significant oil reservoirs, has become a focal point for climate activists who are pressing for an end to fossil fuel production.
Last month, it was reported that Equinor halted its Rosebank sales process due to the upcoming UK election, as the new Labour Government was considering raising taxes on the oil and gas sector.
Equinor has been engaged in constructive talks with the Labour Party, the executive said.
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By GlobalData“What is important to us is that the deduction rights for investments against tax must be maintained in the future,” Reitan noted.
He also noted the positives in Labour’s energy manifesto, which supports heightened activity and investment attractiveness in Britain.
The Rosebank project, valued at $3.8bn and 20% owned by Ithaca Energy, is due to commence operations between 2026 and 2027.
Equinor has plans to invest approximately Nkr143bn (£9.98bn) in the UK by 2030, encompassing a range of sectors including oil, gas, renewables and other energy-related projects.
“But we depend on a good tax system that is predictable and business friendly,” Reitan added.
In its second-quarter financial results, Equinor reported a 4% drop in year-on-year profits, with an adjusted operating income of $7.48bn.
The decline was attributed to milder weather, which led to decreased European gas prices, higher inventory levels and a reduction in demand.
