The Board of Directors of Pandion Energy has today approved sanctioning of the Hod development project. The project was originally scheduled for approval in March but was put on hold due to the outbreak of the COVID-19 pandemic and subsequent collapse in global demand for oil.
On Monday 8 June, the Norwegian Government and the three largest opposition parties agreed on temporary changes to the Petroleum Tax Act in support of the oil and gas industry. Hod is the first project to be launched as a direct consequence of these changes.
Jan Christian Ellefsen, Chief Executive Officer of Pandion Energy:
“The board’s approval to move forward with the Hod development in the current market environment has been made possible by the temporary changes to the Petroleum Tax Act. For Pandion Energy, equal treatment of companies within and outside tax position, through negative instalment tax for the latter group, has been a decisive factor. We now look forward to the execution phase together with the operator Aker BP, replicating the successful Valhall Flank West project.”
The Hod development project unlocks approx. 40 million barrels of oil equivalents and the field is expected to generate more than NOK 6 billion of tax revenues during its lifetime. Including ripple effects, the project is estimated to create around 5 000 man-years of employment during the execution phase. With power from shore via the Valhall field, Hod also adds to Norway’s growing portfolio of oil and gas producers with ultra-low CO2 emissions.
Pandion Energy press release:
Pandion Energy approves the Hod development project