White paper on opportunities and challenges in the northern areas. Government supports Norwegian companies that wish to participate on the Russian continental shelf

The white paper Opportunities and Challenges in the North (Report No. 30 (2004-2005) to the Storting) was presented to the Council of State today. In the white paper, the Government gives an account of the new opportunities and challenges Norway is facing in the northern areas and how it intends to address them with a view to securing political stability and sustainable development in the region.

The development of the petroleum sector in the northern areas is taking place at a time when production in other parts of the Norwegian continental shelf is reaching its peak. This will make the development of the petroleum resources in the northern areas especially important. Such development will ensure that the expertise and experience Norway has built up in the petroleum sector is maintained. This will secure existing jobs in the Norwegian petroleum industry and ensure that the technology and expertise are further developed.

From the Norwegian point of view, the activity on the Norwegian continental shelf is of prime importance. But it would also be very valuable if Norwegian offshore technology and expertise could be put to use on the Russian continental shelf. So far Russia has concentrated mainly on developing onshore reserves. As a result, Russia does not have advanced offshore expertise. There is, however, considerable interest among Russian companies in developing offshore oil and gas fields. New opportunities may open up for Northern Norway and its business sector due to their proximity to the oil and gas reserves in northwestern Russia.

“Norwegian companies’ expertise and technology, which have been built up in connection with advanced development projects both on the Norwegian shelf and elsewhere in the world, may prove to be an advantage in the competition to participate in projects on the Russian shelf,” said Foreign Minister Jan Petersen. “Norwegian participation there would lead to more activity for the Norwegian oil companies, the supply industry and the local business sector in Northern Norway. The Government will do its utmost to support Norwegian companies that wish to participate on the Russian continental shelf,” said Mr Petersen.