Press Release

Date: 25 August 1998

Increased co-operation across the North Sea delimitation line

Meeting between Norwegian Petroleum and Energy Minister Marit Arnstad and the British Energy Minister John Battle during ONS focus on and facilitates increased co-operation across the North Sea delimitation line

The Norwegian Petroleum and Energy Minister Marit Arnstad and the British Energy Minister John Battle has during their bilateral meeting in Stavanger on 25 august signed two new agreements.

Minister Marit Arnstad says she is delighted that the two agreements could be signed. They are the final result of hard work on the political level as well as by administration officials for several years. The agreements will facilitate increased co-operation between industry and authorities in the two countries across the North Sea delimitation line.

The first agreement amends the so-called Frigg treaty entered into in the 1970ties. The other agreement is a new Framework agreement. When both agreements enter into force they will provide the foundation for extended co-operation between the Norwegian and the British sector of the North Sea Continental Shelf. The revised Frigg treaty will facilitate the continued use of the two landing pipelines between the Frigg Field and the landing terminal in St. Fergus, Scotland also after the termination of gas production from the Frigg Field reservoir. The revised treaty establishes principles and consultation procedures that will ensure that parties may satisfy themselves that the infrastructure will be utilised in the best possible way. The agreement has also been thoroughly updated concerning procedures to deal with the termination of use of the Norwegian, the UK or both pipelines.

The new Framework agreement will regulate general bilateral issues concerning future interconnecting pipelines. Interconnecting pipelines in this context mean pipelines connecting platforms or submarine pipelines placed on the Continental Shelf of the two parties and being subject to their jurisdiction. The Framework agreement developed as a result of the exhaustive discussions in relation to the revision of the Frigg treaty. The Framework agreement has adopted the modernisation effort made during the work on the revision of Frigg. The way the Framework agreement is formulated predictability is enhanced, and necessary administrative efforts and resources to deal with formal requirements will be reduced both for industry and authorities.

In addition to the signing of the agreements the two ministers discussed a number of other energy matters of common interest such as the oil market, gas activities, industrial issues and the Baltic Sea initiative. The ministers also agreed to continue discussions on the administrative level concerning the abandonment of installations and pipelines. The ministers agreed that procedure in relation to abandonment of such facilities shall be transparent and include wide consultations prior to decisions being taken.