Norway

Shell has been present in Norway since 1912. The main activity of A/S Norske Shell is the exploration and production of oil and gas on the Norwegian continental shelf. The company is a partner in 34 production licences and operates 14 of them. There are two Shell-operated fields which are producing: Ormen Lange (Shell interest 17.8%) and Knarr (Shell interest 45%). The company also has interests in the producing fields Troll (Shell interest 8.1%), Kvitebjørn (Shell interest 6.45%), Sindre (Shell interest 3.22%) and Valemon (Shell interest 3.22%), which are operated by partners.

A/S Norske Shell is a partner in the Northern Lights project for the transport and storage of CO₂ in a government-funded carbon capture and storage (CCS) project. The government aims to use captured CO₂ from a waste-to-energy plant and cement factory along with CO₂ from third-party sources. 

Gasnor AS is a wholly owned subsidiary providing LNG to industry and marine markets, and NewMotion is establishing an electric vehicle charging business in Norway.

Country Financial Analysis

The statutory corporate income tax rate in Norway is 22%. In addition, there is a special tax of 56% on the production and transportation of petroleum from the Norwegian continental shelf. Shell’s overall tax rate is 78%. Revenues have decreased due to the Gjøa and Draugen divestments at the end of 2018. Tax paid is partly related to 2018 and partly to 2019.

Our Payments to Governments Report for 2019 also shows that Shell paid around $1.9 billion in production entitlements and fees.