Le vernissage

Speech by Deputy Minister of Petroleum and Energy Anita Utseth at RAO/CIS , Norwegian Embassy, Hydro, Statoil, INTSOK Banquet “Le vernissage” 10 September 2007

Ladies and gentlemen,
It is an honor and pleasure to address you at this banquet.

In my remarks today, I will focus on the potential for further development of cooperation between our two countries and industries. In doing this let me first say a few words about the the energy dialogue between Norway and Russia.

President Putin signed a Joint Declaration between Norway and Russia when he visited Oslo in 2002. This declaration underlines the importance of the energy dialogue between our two countries.

President Putin has also on later occations confirmed the good relationship between our two countries in annoncing Norway to be Russia’s strategic partner in development of hydrocarbons in the north. Last time was when prime minister Stoltenberg visited him in June this year.

In his meeting with President Putin Stoltenberg underscored the importance of concrete projects to be launched under the strategic cooperation in the energy field. He also suggested that the Russian and Norwegian ministers of energy should elaborate a framework for concrete cooperation especially in the Barents area. Stoltenberg also suggested thad climate and joint implementation could be a new area for cooperation. President Putin responded positively to these suggestions.

Industrial co-operation
I strongly believe that a fundamental aspect of the energy dialogue is to promote co-operation between Russian and Norwegian oil and gas companies and the supply and service industries. Activities in the Barents Sea, the Pechora Sea and the Sakhalin offshore developments offer ample opportunities for a constructive cooperation between Russian and Norwegian industries. Many Norwegian companies deliver goods and services to the Russian oil and gas sector. For example, Norwegian companies have won 25 % of the contracts on the Priraslomnoye oilfield in the Pechora Sea.

Still, cooperation between Russian and Norwegian companies should not be limited to operations in the Russian market. Russian companies are more than welcome to invest and compete in Norway on the same terms and conditions as other international companies. Several Russian companies have found their partners in Norway and are involved in supplies to the Norwegian oil and gas industry.

Norwegian competence
The Norwegian companies present here today have developed their competences and technological knowledge on the Norwegian Continental Shelf in close cooperation with international companies. Today, technology developed on the NCS is utilized by the international oil and gas industry all over the world.

The two largest projects on the Norwegian Continental Shelf the last years - the Statoil operated Snøhvit field and the Hydro operated Ormen Lange field are good examples of world class technologies developed in Norway over the last 35 years.

Development of local industry
Norwegian companies have experience in developing local industry and accept social responsibility as a natural part of endorsing the principles of sustainable development. Having a long term perspective on activities and engagement in the Barents Region, issues related to local and regional community development at large, are an integrated part of the preparatory work for companies looking at opportunities in the Barents region and elsewhere

I would like to mention Statoil’s ongoing dialogue with the regional authorities in Murmansk and Archangel, targeting relevant industrial, labour and social issues to be addressed in order to prepare for a growing petroleum industry.

I would also like to mention the Supplier Development Program carried out by Hydro in Russia since early 2003.

It is also a pleasure emphasizing the excellent work INTSOK is doing in facilitating contact between Norwegian and Russian companies. In the ongoing Project for Partnership between the Russian and Norwegian oil and gas industries initiated by INTSOK. Gazprom, Semorneftegaz, Lukoil, CBK (central bureau construction) Rubin are among the Russian partners in the project aiming at developing cooperation between Norwegian and Russian companies.I strongly believe that these initiatives are important contributors to development of local industry related to offshore developments in Russia and Norway.

I am optimistic about the future cooperation between Russia and Norway in the energy sector, both on commercial and the governmental level. I am convinced that co-operation between our two countries in the petroleum sector will continue to prove mutually beneficial.

I hope we all will have two interesting and fruitful days at the conference!