DEPARTMENT OF TRADE AND INDUSTRY

							DEPARTMENT OF TRADE AND INDUSTRY


P/2001/608 1 November 2001


Energy Minister Brian Wilson today announced a new joint working group to focus on future
collaboration between the UK and Norway in the oil and gas sector. The Minister was
speaking at a conference on opportunities for international investment in the Norwegian oil
and gas industry attended by their newly appointed Minister for Petroleum and Energy, Einar
Steensnaes.


The working group will take forward areas identified for future co-operation at last October's
Trade Partners UK/INTSOK conference and round-table discussions at Offshore Europe in
September this year.


Mr Wilson said


"When I met with senior representatives of the oil and gas industry at PILOT last month I was
encouraged by their positive comments on future collaboration with our Norwegian
counterparts. As a result I asked my officials to initiate discussions with the Norwegian
Ministry of Petroleum and Energy to set the ball rolling."


"The Norwegian Government share my enthusiasm for progress in this area and today marks
the first step in our journey. The Group will consist of Government and Industry members of
PILOT and its Norwegian equivalent Topplederforum. We can learn much from each other's
experiences of working the North Sea and I expect to see many positive recommendations for
future co-operation."


During his speech Mr Wilson highlighted an amendment to the Frigg treaty in relation to
Norway's Vesterled project and revision of the Heimdal treaty as recent examples of bilateral
co-operation. He spoke of a political willingness to facilitate bilateral agreements and
encouraged continued dialogue between UK and Norwegian companies.


Notes for Editors


1. PILOT, the successor body to the Oil and Gas Industry Task


Force, was established in January 2000 to secure the long-term


future of the oil and gas industry in the UK. PILOT is made up of


23 key Government representatives and recognised leaders from the
industry and meets quarterly.


PILOT aims to achieve the following outcomes for 2010:


- Maintenance of a production level of 3 million boepd


- #3 billion per annum investment


- Prolonged self sufficiency in Oil and Gas


- Up to 100,000 more jobs that there would otherwise have been


- 50% increase in exports (by 2005)


- #1 billion per annum additional revenue from new business.


2. Six areas for UK/Norwegian co-operation were identified at the October 2000 Trade
Partners/INTSOK conference: market liberalisation; harmonisation of standards; research and
development; operational synergies; joint marketing in third countries; and combined use of
infrastructure.


3. The new working group will comprise Government & Industry representatives of PILOT and
its Norwegian equivalent, Topplederforum following discussions with the Norwegian Ministry
of Petroleum and Energy.


4. Vesterled connects Norway's Heimdal processing facilities to her existing Frigg pipeline on
the United Kingdom Continental Shelf. This has benefits for both the United Kingdom and
Norway: It has allowed Norway to develop Heimdal as a gas processing hub and to make
continued use of her Frigg pipeline as the Norwegian sector of the Frigg gas field reaches
depletion; but it also allows for the continued supply of gas to the United Kingdom, thereby
enhancing our longer term security of supply options.


5. The revision to the Heimdal treaty will allow for new petroleum liquids, produced as
Norway's facilities at her Heimdal field are developed in to a gas processing centre, to be
transported to the United Kingdom via Norway's Heimdal-Brae pipeline and United Kingdom
pipeline infrastructure. It will also allow, for the first time, for liquids won from fields other than
Heimdal to use Norway's Heimdal-Brae as part of the transportation route to the UK. Again
there is mutual benefit to the UK and Norway, in terms of value to UK and Norwegian
operators and of longer-term security of supply.


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