Your Excellency, distinguished guests,
It is a great honour and pleasure for me to be present here today to deliver the opening statement at this seminar.

As State Secretary for Petroleum and Energy in Norway, I know that the deregulation of the power sector is a very important issue for both our countries. I hope the discussion today will be a fruitful one and take us further along the path towards an efficient and reliable power sector.

The Norwegian energy sector
With its growing demand for energy, South Korea is an important country in the world energy markets. And I’m proud to say that in this field Norway too has an important role to play. My country is the third largest net exporter of crude oil in the world, and we are among the three leading gas suppliers to the European gas market. Our major oil company, Statoil, is now partly privatized. This company is one of the world's leading as regards the development of deepwater technology for offshore oil and gas fields.

Norway is also the sixth largest hydropower producer in the world, with an average production of 118 TWh a year. Almost all our electricity is produced by hydropower. In addition large volumes of electricity are exchanged and traded with our neighbouring countries in northern Europe.

In the last decade we have restructured our power sector, and the experience we gained in this process should be of relevance for South Korea. As vital elements of the deregulation, we have established a transmission system operator and a power pool.

Norwegian industry has a strong position in many Asian countries. Our companies operating in Asia provide services and products that are essential to the infrastructure of countries with dynamic economies. And this applies not least to the energy sector, including both hydropower and petroleum.

Public participation in the Norwegian power sector
At the beginning of the 20 ^th> century, hydropower was considered a beneficial resource for the whole of society. Public participation at various levels was ensured through legislation, which provided for extensive public consultation as a means of ensuring a democratic and comprehensive licensing process in the power sector. The same applies to the function of the regulator, which is a precondition for controlling the natural monopoly in an open power market.

Unlike other countries, we have restructured and deregulated the Norwegian electricity sector without privatization. This quite unique approach might be of interest to you when you are considering various options for deregulating the power sector in South Korea.

Furthermore, our legal system ensures a high degree of state control of the power resources. There has for a long time been broad political consensus in Norway on this issue.

The complementary expertise of Norwegian companies
The Norwegian companies present here today offer all the services required for the further development of the power sector. These services comprise all aspects, from conducting pre-feasibility studies via planning and construction work to delivery of mechanical equipment. Thus the Norwegian companies represent a complementary expertise.

They also have extensive experience of operating in a market-based power sector and of facilitating the establishment of markets in this sector. I am pleased to see that three of them are delivering lectures later today, where they will share with you some of the experience they have gained in the restructuring process.

They are cooperating on a number of projects all over the world, and this seminar should be a good opportunity for you to get to know them better, and vice versa.

Important aspects of a deregulated power market
So to some important aspects of a deregulated power market. The introduction of a market in the power sector in Norway 10 years ago led to an increased awareness about cost-effectiveness with regard to both the operation of existing plants and the development of new projects.

An important part of the reform was to secure open access to the grid for all consumers. Every consumer can change their electricity supplier if they wish. The distribution system is subject to regulation in order to safeguard consumers’ rights and ensure an effective electricity sector.

Another important part of the reform was the division of the State Power Board into two state-owned enterprises: Statkraft, which is Norway's largest power producer, and Statnett, which owns and operates the central grid as well as being in charge of the system operations. Both companies are present here today.

Prospects for cooperation in the energy sector
If we look forward, I believe that both Norway and South Korea have a common interest in a strengthened cooperation in the energy sector. Norway has developed the major part of the available hydropower resources, and has thereby gained a lot of experience in all related fields over the last 100 years. In the last decade we have taken this experience one step further and created a modern and deregulated power market.

Earlier today, we attended a signing ceremony involving a power project based on a new power source, represented by Organic Power's district heating projects using waste material. I am very pleased to see that the cooperation between our two countries has already advanced this far during our stay in Seoul.

In this context, I would like to highlight the potential that lies with the development of such environmentally benign technology. There is an increasing global awareness for the need to protect the external environment and the safety of people, and my Government wants to encourage the progress of a competitive technology to meet the wide range of challenges that we encounter on our way towards a sustainable energy future.

Concluding remarks
Speaking on behalf of both the Government and the industry, I will conlude with saying that Norway will be pleased to cooperate with South Korea both in the energy sector in general and in the hydropower sector in particular.

I wish all of you many interesting discussions during the seminar. I would also like to take this opportunity to offer my thanks and congratulations to the organizers of this interesting event.

It is my hope that this occasion will strengthen the bilateral cooperation in the energy sector to the benefit of both our countries.

Thank you for your attention.

Kamsa hamnida.