Phillips concluded that this would not be commercially profitable under the prevailing assumptions. The licensee group then began negotiations with the Norwegian Petroleum Directorate (NPD) and the Ministry of Petroleum and Energy (MPE) on possible changes to the tax rules covering North Sea development projects.
The MPE was basically unwilling to give any exemptions from the normal tax regime. But both it and the NPD had long been concerned to achieve water injection as part of offshore depletion policy.
In their view, implementing the project would be good national resource utilisation. Building the Ekofisk 2/4 K injection platform would also provide welcome work for Norwegian industry. But discussions between licensees and government proved long and difficult. Agreement was not reached until 9 August 1983.[REMOVE]Fotnote: Kvendseth, Stig S, Giant Discovery. A History of Ekofisk Through the First 20 Years, 1988: 194-196.
Norway’s first female drilling supervisorTax agreement reached on waterflooding