Statoil (STO) cited government proposals to raise petroleum taxes in its decision to postpone...

|About: Statoil ASA (STO)|By:, SA News Editor

Statoil (STO) cited government proposals to raise petroleum taxes in its decision to postpone its Johan Castberg field project in the Barents Sea, but STO also is said to be facing a cost overrun of ~$5.2B even before development work starts. The project’s original breakeven oil price of $64/bbl has grown to $74 due to other cost factors aside from the tax effect that would raise it further to $81, according to a Norwegian source.