A revamped tax package hammered out by the Norwegian government and opposition parties is set to revive potential investments in a raft of field projects stalled due to the collapse in oil prices, while boosting liquidity for a number of players, according to an analyst.

The improved proposal presented this week by parliament’s finance committee, will raise the uplift allowance against the special petroleum tax to 24% — compared with the present level of 20.8% and the government’s proposed reduction to 10% — and allow immediate deduction of investment costs against tax, as opposed to over six years at present.