The British and Norwegian Energy Ministers, Mr. Brian Wilson and Mr. Einar Steensnæs, met during the International Petroleum Conference at Sanderstølen to discuss certain issues with regard to cross border petroleum co-operation.

Both Ministers expressed satisfaction with regard to the progress made and the work undertaken by all concerned since their meeting in Stavanger in August 2002. An Implementation Group has followed up the recommendations of the UK Norway North Sea Co-operation Working Group which submitted its report to the two Ministers on that occasion.

At the centre of discussion this time was the UK market for imported gas and the opportunity this represents for the development of the Ormen Lange project.

Ormen Lange is a giant gas field, expected to come on stream during 2007. New infrastructure will be required to deliver this gas to the UK. This infrastructure will be subject to regulation by a new Framework Agreement between the two Governments. The elaboration of such an agreement is well advanced and the two Ministers aim at establishing main principles during their forthcoming meeting at the Shetlands towards the end of March this year.

The Ministers also discussed the future potential for delivering wet gas to St Fergus.

In a joint statement Mr. Wilson and Mr. Steensnæs said “The potential for co-operation on future requirements for gas is enormous and it is crucial to establish terms which will be beneficial to both the UK and Norway. We have taken a close personal interest in giving this process political momentum and we have established the Shetland meeting as a target date to achieve a framework of principles.”