Norway’s parliament is expected to make major changes to a tax relief proposal to stimulate field investments in the key oil and gas sector as Labour and other opposition parties throw their weight behind the embattled industry.

The revised fiscal package presented by the minority government, which would allow immediate deduction of investment costs against tax while reducing uplift from 20.8% to 10%, is widely seen as inadequate to boost project profitability and is unlikely to be passed in its present form.