It is a great pleasure to be here in Halifax, and to take part in the opening of CORE.

Many of you who are present here today, are looking for new business opportunities. Let me at once assure you that the Norwegian government is eager to promote co-operation between Norway and Atlantic Canada.

I will briefly discuss the main elements of the Norwegian petroleum policies, the challenges we face, and how these challenges may relate to our co-operation with Atlantic Canada.

Facts on the Norwegian oil and gas production
First some facts on the Norwegian oil and gas production:

Oil was first discovered offshore Norway some thirty-five years ago, and production started in 1971.

Since then we have continuously expanded our production capacity. This year we will produce about 3 million barrels a day. Our domestic oil consumption is limited, and we are able to export most of what we produce. Norway is ranked as the world's third largest exporter of crude oil.

Like Canada, Norway holds large quantities of natural gas. This makes us an important supplier of natural gas to Western Europe. We currently have a total market share of 13 per cent and expect this to increase further.

I would like to bring to your attention that Norway is looking at a potential for another 50 years of oil production, and gas for a 100 years, though not at the level of production we see today.

In 2002, the sector represented nearly 20 % of our Gross Domestic Product.

Norwegian Petroleum Policy: Main elements and challenges
Let me now share with you some key elementsin the Norwegian oil and gas policy:

First, we consider the Norwegian oil and gas resources part of our national wealth. Hence, society as such should benefit from the depletion of these resources.

Second, at an early stage we defined the goal of developing a Norwegian oil and gas industry. One important element to obtain this, has been to attract the best of international expertise and competence, and to promote co-operation between domestic and international players. So, we invite the oil companies to compete for licences to explore and produce oil and gas on the Norwegian Continental Shelf.

Third, it has always been an aim to reconcile the role of being a major energy producer with being in the environmental forefront. My government will continue to pursue ambitious resource management policies based on the goal of coexistence between the petroleum sector, other industries - like fishing - and environmental considerations.

Such considerations are especially important in the question of expanding our petroleum activities to the northern part of the continental shelf. The Barents Sea and parts of the Norwegian Sea are regarded as enviromentally sensitive and demanding areas.

An important challenge is to make sure that we obtain the maximum value of our petroleum resources. Even though the resource base is promising, certain conditions must be fulfilled:

• There must be a strong focus on health, safety and environment. All operations must be based on the goal of continuous improvement.
• We have to make sure that the Norwegian Continental Shelf is competitive: We must be able to compete with other petroleum provinces in attracting investments and the best human capital.
• Eventually, the Norwegian oil and gas industry must be competitive on a global scale.

Globalisation – challenges
Atlantic Canada and Norway share a common task in adapting to the changing winds of globalisation.

The oil and gas industry has always been international. This was also the case for the Norwegian petroleum sector, when we started our offshore activities some 35 years ago. At the time we had the challenge of developing a national petroleum policy. Since then the world has changed dramatically. Let me mention some examples:

• Energy markets and capital markets have been liberalised,
• Mergers and acquisitions have brought on a different set of players on the global energy arena,
• International competition has intensified, and
• Public concern for the environment as well as corporate social responsibility is increasing.

These examples may illustrate that industry and authorities alike have to take on board the consequences of a more integrated world economy.

The room for Government intervention seems to be diminishing as the world economy grows more inter-related. This is a new situation that must have its bearings on all of us, but we hardly know all the answers yet.

For host countries to the global oil and gas industry, such as Canada and Norway, it is a major challenge to exploit the resources efficiently and to develop a sustainable petroleum industry. Faced with liberalised capital markets and a globalised world economy, this is no easy task. The competitive pressure is increasing, and it is not evident that yesterday's winners will be the winners of tomorrow.

However, one thing is for sure: It is a prerequisite that framework conditions are attractive with regard to political stability and a sound business environment.

In this respect, I would like to underline the importance of maintaining a reasonably high and stable level of activity. The Norwegian Government is working hard to stimulate exploration that can result in new discoveries and profitable production of oil and gas. Measures include prequalification of oil companies - operators and licensees alike – more frequent licensing rounds and simplification of application procedures.

I would also like to mention that we are co-operating closely with the UK Government and petroleum industry to harmonise regulations, improve mutual market access and utilise infrastructure across our common North Sea border. Both our Governments see enhanced cross-border co-operation as an important requisite for unlocking greater values through greater efficiencies, cost savings and accelerated developments. Through this the North Sea may strengthen its overall climate for business and investment.

Internationalisation
As you know well, the Norwegian oil and gas industry is working actively to grow in international markets. This process started several years ago. With a growing market potential for petroleum related goods and services, combined with a maturing North Sea, internationalisation has become increasingly more important to us.

With the experience gained here and elsewhere, we also hope to improve our way of coping with technology and business challenges at home.

In the timespan of a generation, Norway has transformed its industrial base, which now comprises a number of skills clusters. Now, our way forward must be to stimulate and refine these skills clusters to enable them to undertake the present challenges on the Norwegian Continental Shelf in a cost-effective manner, alongside with a further internationalisation of the supplier and service industry.

At the same time it would hardly be wise to aim to excel in all parts of the oil and gas value chain. Globalisation demands division of labour and emphasizes the importance of comparative advantages. This means that we must be willing to consider structural changes, even if their consequences may be demanding to those affected.

When approaching internationalisation, Norway has the benefit of having been a host country to the international oil industry. Being familiar with some the industry's dilemmas and issues ought to have given us an understanding of the sensitivities involved when visiting or working in a foreign country, like:

• Globalisation versus local aspirations
• Is local content a delaying and more expensive element? And to achieve synergies - "Is it all to be centralised in Houston"?
• Centres of excellence for technology development and specialist skills - where should they be?
• Use of competitive elements through national, indigenous and international oil companies and contractors.

As a Government, we do not have the answers to all these questions. By entering into a dialogue with the industry as well other host nations we hope to develop strategies that are beneficial to all parties involved.

However, such a dialogue must be based on transparency. Transparency is instrumental for creating a predictable business environment, and it is conducive to sustainable economic growth, to fair distribution and to social development.

Therefore, Norway is supporting the Extracting Industries Transparency Initiative (EITI). Originally a British idea, the initiative encourages governments, extractive companies, international organiastions and NGOs to work together voluntarily to promote transparency of payments and revenues. This is an excellent example of global co-operation. And I think Canada and Norway together can play a constructive role.

Co-operation with AtlanticCanada
Clearly, goals of growth and continued welfare cannot be reached in isolation. In a global economy there is a need to exchange ideas and experience between all countries, and to develop partnerships based on comparative advantages. From a Norwegian point of view, we see a large potential for increased co-operation with Atlantic Canada, both in oil and gas, in the offshore and maritime sector and in the marine sector.

Generally, Canada is an excellent nation to invest in. It is a welcoming nation, and has been rated as one of the prime countries for setting up business and starting North American operations.

Atlantic Canada presents exciting opportunities in exploration and development of oil and gas.

I find it encouraging that there is a thriving Norwegian oil and gas community in Atlantic Canada. This is an excellent place to seek inspiration, partnerships, and business opportunities.

I am convinced that co-operation between our two countries in the petroleum sector will continue to prove mutually beneficial.

With these words, I look forward to our future co-operation.

Thank you for your attention.