Ladies and Gentlemen,
It is a great pleasure for me to open this Round Table here in Kirkenes at the shores of the Barents Sea and the Arctic. Kirkenes represents many important symbols to us. As we have heard the mayor point out, it is a historic landmark for trade between Norway and Russia, and was an important bridgehead in the Russian liberation of Northern Norway in 1945.

Today, this city represents a central hub for extensive contacts between Norway and Russia and a constructive and flourishing development in the region. It is therefore also a well suited venue for our discussion.

World energy demand is increasing. Norway as a major producer of oil and gas has limited domestic consumption - most of our production is exported. We are committed to remaining a stable, reliable and long term supplier of oil and gas to our markets.

Third largest
Norway is the third largest exporter of oil in the world, only behind Saudi Arabia and Russia, and we are also the world's third largest exporter of natural gas. EU countries are our main markets for gas, but with the new Snøhvit LNG development in Hammerfest the United States will also become an important market in the years to come.

Recent forecasts from the IEA show that the global need for energy could increase by as much as 60 % in the next twenty-five years. Most of this increase will be covered by fossil fuels. At the same time we see that the geopolitical interest concerning energy and safety of supply has increased substantially. Just at this moment we need not look further then the other side of the North Sea, and to the G8 meeting in Scotland, to illustrate this point. To my mind, reducing poverty and handling the climate challenges are both issues very closely linked to energy.

To cover the increased need of petroleum we need to look further then the Middle East. Many believe that the world's Arctic regions, including the Barents Sea, contain significant amounts of petroleum resources. The geopolitical interest connected to the Arctic areas will therefore increase in the coming years.

With the European Union, the Unites States, Russia and Norway gathered we represent a substantial part both of world production and of world consumption of petroleum. We all border on the Arctic region, and are key policy makers for activity in this area.

Also present are a group of leading oil companies. Realising the energy potential of the Arctic will not only need good policies, but also great companies with the technical, commercial and financial resources necessary.

Focusing on the Arctic areas
The background for my initiative to establish an Arctic Energy Agenda is therefore to safeguard the supply of petroleum in the long term, focusing on the Arctic areas.

Looking at the challenges in these waters we meet a vulnerable environment, ice conditions, darkness and long distances to markets. The potential rewards are also large. I believe the Barents Sea could represent the new petroleum province of Europe. I also think that a further development of the Barents Sea will enable the oil companies to explore and develop new areas. I believe that the cutting edge technology and innovative skills needed to do this will also be key in developing other Arctic areas.

A couple of weeks ago, I announced an extensive 19 ^th> licensing round comprising acreage both in the Barents Sea and the Norwegian Sea. Our petroleum activities in the Barents Sea today are based on a comprehensive assessment in both substance and process. This was the foundation for the Government’s decision to re-open the Barents Sea south for petroleum activity in December 2003.

This April, the Norwegian Government presented a White Paper to Parliament on Northern issues. Our fundamental aims for the north are based on a responsible and sustainable management and development of all natural and marine resources, as well as co-existence between different activities and concerns.

The parliamentary debate on the White Paper showed a broad political consensus for the Government's recommendations concerning the northern areas. Let me also add that I am convinced that the development of Northern Norway is closely linked to the continued development of our petroleum resources in the north.

We share the Barents Sea with our Russian neighbours. The relationship between Norway and Russia is therefore an important part of our policies concerning this region. A main point is that the challenges in the north must also be solved in the best possible manner in close cooperation between our two countries.

TheBarents Sea
The Barents Sea is by many described as the cleanest ocean of the world. This must be preserved. Value creation here must therefore take place in such a manner as to ensure the good co-existence between the different users of the sea and the environment.

In Norway we have adopted some of the world’s strictest conditions for petroleum exploration and production in the Barents Sea. We have a policy of zero discharges to sea from the operations. I believe that these measures are necessary in order to ensure sustainability of our operations. I might also add that these targets are an important part of securing public acceptance to operate in these areas.

Our task is to ensure a sustainable development and management of these areas. We have a common interest in obtaining this goal. We must jointly lay the foundations for the future sustainable management of the Arctic areas. In this respect we have good experiences with the contents and processes of the Norwegian environmental assessment studies. This can be part of Norway´s contribution, as we are more than happy to share with others. Further we could work together to establish the highest level of safety and the strictest environmental requirements for the conduct of petroleum activities in the Arctic. However, issues related to the Arctic are global in nature. We need comprehensive policies to achieve sustainable development and management of the energy resources. I think it is important to establish a framework whereby all interests and relevant issues can be addressed. Understanding and respect between the different stakeholders is crucial for all activities in the arctic.

This can be done through the formulation of common standards and principles for sustainability, and on the basis of international norms and standards, as appropriate.

Where do we go from here? What are the challenges and dilemmas? I would like to see the following addressed in our discussion:

• How do we facilitate the continued development of the technology and the knowledge needed to safeguard sustainable petroleum activities in the Arctic?
• And how can we join forces in establishing a political framework as well as a broad public support for sustainable petroleum activities in the Arctic?

What are the answers? I believe we should consider developing a joint action plan. In this plan we could identify the short-term and the long-term issues – in other words an architecture for the Arctic Energy Agenda. In this context I see today´s round table as a first point of departure. Relevant governments, bodies and companies should meet at regular intervals to develop our common agenda further.

I look forward to today’s discussion, which I invite to also capture these issues.