Steensnæs and Timms sign up to enable key gas supply deals

Norwegian and UK Energy Ministers, Einar Steensnæs and Stephen Timms today agreed on the key principles for regulating a wide range of potential cross boundary oil and gas projects, including pipelines. The agreement has the potential to fulfil up to a fifth of the UK’s annual gas demand and a fifth of Norway’s annual gas production.

The two Ministers state that an important step now has been taken in the development of the North Sea as a whole. They share a common interest in ensuring the good management and commercial development of their respective petroleum resources.

Mr Steensnæs and Mr Timms met in Oslo today to co-sign an agreement on principles that will underpin future cross-border oil and gas co-operation between the two countries and in particular be incorporated in a new Framework Treaty.

This is a landmark in energy co-operation between the two countries.

Today’s agreement provides a firm basis for new investments by industry, most notably the proposed pipeline project (“Britpipe”) to bring an estimated 20 bcm/pa (billion cubic metres per annum) of dry gas from the Ormen lange field via Sleipner to Easington which is planned to begin in October 2006.

The regulatory terms for a prospective link between Norway and UK dry gas infrastructure – in respect of a possible further tranche of Norwegian gas in future - have also been agreed.

The Ministers issued a joint statement outlining the main points of today’s agreement along with a more detailed document and its accompanying annexes setting out the key principles.

Oslo, 2 October 2003

The statement (in pdf format)
Agreement
Principles

Hard copies and email versions of these statements are available from:

Sissel Edvardsen
Norwegian Ministry of Petroleum and Energy
Tel: +47 22 24 61 09

Email: se@oed.dep.no

David Tyrrell
Department of Trade and Industry
Tel: +44 207 215 5150

Email: david.tyrrell@dti.gsi.gov.uk

Neil Burrows
Department of Trade and Industry
Tel: +44 207 215 5960

Email: neil.burrows@dti.gsi.gov.uk