Norwegian Court Rules in Favour of Oslo’s Decision to Slash Tariff for Gassled

A Norwegian court ruled in favour of the national government in a lawsuit put forward by mighty international investors who argued that Oslo illegally cut fees on the 8,000-km (5,000-mile) Gassled gas pipeline network.

“The Ministry of Petroleum and Energy is satisfied that the claims against the Norwegian State have been rejected by the Oslo District Court,” Ole Berthelsen, Head of Communications, said in a note. 

The government argues that low transport tariffs imply lower costs for E&P companies, which then facilitate ‘optimal management of Norway’s petroleum resources.’

According to the companies, the decision of the Norwegian government could cost them 15 billion crowns ($1.8 billion) in lost earnings by 2028. 

Allianz, UBS, the Abu Dhabi Investment Authority and the Canada Pension Plan Investment Board bought their shares in the Gassled network from from ExxonMobil, Total, Statoil and Royal Dutch Shell.

‘The ministry is to blame for this, but following an overall assessment the court concludes that the actions of the ministry's leadership can't be regarded as qualifying negligence - which according to the law is a condition for triggering liability’ said the ruling. 

Meanwhile, also on Friday, Statoil, the operator for the Johan Sverdrup development, updated downwards its preliminary capex estimates. 

‘Overall capex for the first phase has in the updated capex estimate been reduced by NOK 9 billion from NOK 123 billion to NOK 114 billion in nominal terms, assuming the same currency assumptions as in the PDO. The contingency level (in NOK) is maintained in the updated estimate and reflects risks in scope, schedule and project execution’ reads a note released by partner Det Norske.