50 fantastic years Scaring off students Pundit ponders

A JOURNAL FROM THE NORWEGIAN PETROLEUM DIRECTORATE NO 1 - 2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 1 CONTENTS LEADER

NORWEGIAN CONTINENTAL SHELF Learn from the past 1 2 3 4

History is full of far-sighted security. While this North Sea field recent years to recruit more engi- 6 7 A JOURNAL FROM THE people, and that holds true for alone will provide thousands of neers and geoscientists. 5 9 NORWEGIAN PETROLEUM Norway’s oil saga as well. We jobs for several decades to come, The level of activity on the should learn from them, particu- it represents an exception and NCS is pretty certain to remain 8 DIRECTORATE 10 larly when many observers are more such giant finds are fairly high for the next two decades. So NO 1 - 2015 talking down the Norwegian oil unlikely. we will need more good brains to and gas sector. Many discoveries still lack a replace those of today’s person- This issue gives space to plan for development and opera- nel who are now in their 50s. FRONT COVER VOLUME 12- 1 several oil pioneers who deserve tion (PDO), but only a few are All the cuts mean that many Key figures from the history of oil city Stavanger. the nation’s thanks. In the years genuinely time-critical – such people are chasing each new job RESPONSIBLE PUBLISHER Former law-of-the-sea minister Jens Evensen (1), before and after the first offshore as “Trestakk” and “Maria” in the which comes on the market. We Norwegian Petroleum Directorate former Statoil CEOs Arve Johnsen (2), Harald Norvik licensing round in 1965, they laid Norwegian Sea. have advertised four vacancies, P O Box 600 (9) and Helge Lund (10), first Norwegian petroleum the basis for today’s activity on A lot of these finds, particu- and received around 230 applica- NO-4003 Stavanger and energy minister Bjartmar Gjerde (3), former the NCS. larly in the North Sea, will be tions. Norway mayor Arne Rettedal (7), and former top NPD staffers They were visionary, and they developed with subsea solutions But what worries us is long- Telephone: +47 51 87 60 00 Fredrik Hagemann (8), Gunnar Berge (5) and Farouk term recruitment to the industry. E-mail: [email protected] Al-Kasim (6) – while 19th century novelist Alexander The whole nation is still benefiting from the And the oil companies do not Kielland (4) looms in the background. EDITORIAL TEAM appear to have learnt anything 6 Photo: Sverre Christian Jarild (Illustration: Roar Hagen) Bjørn Rasen, editor legal framework and the organisation shaped from the last downturn. They Astri Sivertsen, journalist at that time. should take the time to read the Bente Bergøy, journalist comments from Norway’s oil pio- Past achievers...... 4 Eldbjørg Vaage Melberg, neers in this issue. communications adviser thought and acted for the com- tied back to existing facilities. With law shall the land be built...... 6 Rolf E Gooderham, English editor munity. The whole nation is still The level of activity is declin- In at the start...... 11 benefiting from the legal frame- ing, and the number of explora- PRODUCTION work and the organisation shaped tion wells drilled this year is likely Found his field...... 14 Arne Bjørøen - graphic production at that time. to be below the 2014 figure of 56. First to find...... 16 Printer: Gunnarshaug Trykkeri AS NOK 200-250 billion is due to We are assuredly experiencing Paper: Arctic Volume 200/130 g be invested annually on the NCS a crisis where many people have Dry debut...... 17 Print run Norwegian: 10 500 over coming years. That is on a lost their jobs. Those who have Drawing lessons...... 18 Print run English: 1 800 par with a few years back, when failed to find new employment Celebrating wise choices...... 21 LAYOUT all the indicators seemed to point are naturally suffering personally Klas Jønsson, art director sky-high. We in the NPD were and in their pocket. Work for generations...... 22 concerned at an early stage that But these conditions are likely SUBSCRIPTIONS a high level of activity would put to be transitory. So it is depress- The interview: Watcher in the wings...... 24 www.npd.no.magazine pressure on prices – and boost ing to see that the cuts being Free of charge Doubts return over oil jobs...... 30 costs. made by the companies en masse A move closer to chess in schools...... 33 NORWEGIAN CONTINENTAL Eight development projects are once again frightening young NPD profile: Passionate communicator ...... 34 SHELF are currently under way on the people away. The decline in on the web: www.npd.no NCS. We are still seeing great applications to study petroleum- Facts for the future – or scaremongering?...... 36 FOLLOW US ON TWITTER interest by the industry in new related subjects at university is Rockshot: Raining ash...... 39 www.twitter/oljedir licences, and the long-term activ- dramatic. ity picture looks good. That makes it reasonable Facts sited...... 40 In that perspective, it is to ask whether the oil compa- Oil Facts...... 40 important that Johan Sverdrup nies have thought this through Bente Nyland does not create a false sense of properly, given the struggle over director general

2 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 3 Past achievers

| Bjørn Rasen and Roar Hagen (illustration) ify which parts of the continental shelf belonged to Norway – a subject cov- A group of young Norwegian civil ered by lawyer Carl August Fleischer. servants are wreathed in satisfied Two of the first officials working smiles on 13 April 1965. The govern- on oil in the Ministry of Industry’s min- ment’s official gazette has invited the ing office, Nils B Gulnes and Fredrik oil companies to apply in the country’s Hagemann, also explain how they had first offshore licensing round. great freedom of action. An extensive and groundbreaking Virtually without political interfer- effort to bring Norway into the oil age ence, they and their colleagues quickly is over. What matter, then, that a light put in place the legislation and organ- rain is falling in Oslo and the tempera- ised the new activity. ture is only 3-4°C. That was at a time when the film At the same time, in a sunnier version of The Sound of Music was a Oil pioneers in government and civil service during the 1960s, London, four other young men are big hit across Norway – its audience depicted by Roar Hagen. This cartoon occupies a central place in the recording the song Help! at the Abbey record of 681 000 in Oslo remains Norwegian Petroleum Museum’s new exhibition. Road studio – another event which unbeaten. De statlige oljepionerenehelped to shape history. This issue also carries an interview Prime minister Einar the initial licensing round. Fifty years have passed since that with pundit Hans Henrik Ramm, who Gerhardsen (1) and his govern- Conservative politician Sverre first round on the NCS, and production has kept tabs on the Norwegian oil ment declared Norwegian sov- Walter Rostoft (6) became Det startet på verst tenkeligeis set måte. to last I 1958at least slo another Norges 50. geologisk The adventure since the 1970s. ereignty over natural resources industry minister after the 1965 undersøkelse fast at det ikkeBeatles var oljeare gone,og gass but på nobody norsk wouldkontinental- And, not least, newspaper cartoon- on the NCS in 1963. Key figures general election. be surprised if their music is still being behind this decree were Jens The following year, Gulnes 2 6 sokkel. Derfor var det mange som lurte da amerikanske Phillips ist Roar Hagen contributes his take on played as the giant Ekofisk and Johan the industry – in words and images – Evensen (2) at the foreign acquired two new colleagues 5 Petroleum i 1962 ba om å få enerett til alle forekomstene på norsk 1 9 Sverdrup fields near their end. in his own distinctive way. ministry and his colleagues – geologist Fredrik Hagemann 8 sokkel mot å bruke en million dollar på seismiske undersøkelser. Leif Terje Løddesøl (3) and Carl (7) and engineer Olav K 7 Norwegian Continental Shelf has Hagen’s cartoons have a key place August Fleischer (4). Christiansen. Farouk Al-Kasim 4 3 Som svar på det, sørget statsministerinterviewed Einarthree keyGerhardsen figures about (1) for atin an exhibition which opens at the Nils B Gulnes (5) at the joined the team in 1968. what had to be done before drilling Norwegian Petroleum Museum in industry ministry played a And the discovery of regjeringen i 1963 ensidig coulderklærte begin suverenitet in Norway’s over North havbunnen Sea. ogStavanger on 9 June to celebrate the key role as Norway’s first Ekofisk was announced imme- dens naturressurser på norsk Tokontinentalsokkel. safeguard the sub-surface Bak dette dristige50th og anniversary of Norway’s first oil bureaucrat in work on diately before Christmas 1969. svært så viktige vedtaket storesources, Utenriksdepartementets it was first necessary Jens to clar Evensen- licensing (2) round. med sine dyktige medarbeidere Leif Terje Løddesøl (3) og Carl August 4 | NORWEGIAN CONTINENTAL SHELF 1-2015 Fleischer (4). De gjennomførte deretter grenselinjeforhandlingene om 1-2015 NORWEGIAN CONTINENTAL SHELF | 5 Nordsjøen med Storbritannia og Danmark etter midtlinjeprinsippet.

9. april 1965 vedtok Stortinget det første rammeverk for petroleums- virksomheten i Norge. Like etter ble første konsesjonsrunde utlyst, tidenes desidert største. I august samme år fikk ni oljeselskap rett til å lete etter olje og gass på 78 blokker i Nordsjøen. Sentralt i dette arbeidet sto Norges første heltidsansatte oljebyråkrat Nils B Gulnes (5). Etter valget høsten 1965 overtok en borgerlig samarbeids- regjering makten, med Sverre Walter Rostoft (H) som industriminister og politisk ansvarlig for oljevirksomheten (6).

19. juli 1966 startet Ocean Traveler den første leteboringen etter olje på norsk sokkel. Noen måneder senere fikk Gulnes to nye kolleger på Oljekontoret, geologen Fredrik Hagemann (7) og ingeniøren Olav K Christiansen (8). To år senere, høsten 1968, ble Farouk Al-Kasim (9) den fjerde heltidsansatte på Oljekontoret. Disse fire blir av mange regnet som de statlige pionerene som la grunnlaget for den vellykkede norske oljemodellen.

Funnet av Ekofisk før jul i 1969 gjorde Norge til oljeproduserende nasjon. Politikerne ville staten skulle delta i oljeeventyret og måtte dermed legge om hele oljeforvaltningen. Den endte i juni 1972 med stortingsvedtaket om opprettelsen av Statoil og Oljedirektoratet – i Stavanger. With law shall the land be built

Much would have looked different today had Norway failed to take possession of its offshore resources 50 years ago. Ownership was proclaimed with a special Act penned by Carl August Fleischer.

| Astri Sivertsen and Sverre Christian Jarild (photos)

“… and it says the following here …” Fleischer refers to the note he wrote in 1962, which formed the basis for “Farsighted? This wasn’t about being far- Fleischer wants to correct errors Division head Einar-Fredrik “It was clear, of course, that not the Act passed the following year. sighted,” Fleischer snorts. He points to a in the presentation of events where Ofstad had a meeting in late October seeking to safeguard Norwegian newspaper article on Jens Evensen, and says he played a key role after joining the with US oil independent Phillips interests would be nothing less than the hero status accorded to his old boss and legal department of the Ministry of Petroleum, which presented plans to a dereliction of duty,” says Fleischer. Norway’s first and last law-of-the-sea minis- Foreign Affairs as a 24-year-old law hunt for oil in the North Sea. Together with Ofstad and ter is exaggerated. graduate in November 1960. During the winter and spring, Evensen, he began drafting a Bill to The former civil servant sits with a bun- Evensen became a director gen- similar approaches were received regulate petroleum operations on dle of newspaper cuttings and documents eral in the ministry the following from several other oil companies. the NCS – not because Norwegian from the 1960s one floor above the law year, and by 1962 the legal depart- Five permits to conduct seismic sur- sovereignty was in doubt, but to faculty library at the University of Oslo - an ment understood that something veys, for instance, were awarded in prevent what he calls “unfortunate impressive mid-19th century building. was brewing. this period. dispositions” and to give the govern-

6 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 7 We must admit in retrospect that we were pretty farsighted and pretty smart.

This meant that the job of the oil business returned the the continental shelf built on drafting the legislation devolved industry ministry, its natural the median line principle for on the foreign ministry – for the home. establishing offshore boundaries first and last time in its history. “But it was the legal depart- between two states. “Evensen’s dynamism and ment of the foreign ministry However, it also contained a efficiency were a key reason why which changed Norway,” com- formulation that continental shelf it was accepted that we should ments Fleischer jurisdiction was limited to waters prepare the text, rather than wait- less than 200 metres deep unless ing for the other ministries to do resources could feasibly be recov- lengthy studies,” says Fleischer. Unclarified ered from greater depths – but in The legal framework was in any event not beyond the median place less than seven months The Act might have been line with other states. after the first meeting with passed, but some unclarified “The median line was Phillips, mainly and in all modesty issues remained to be tackled approved almost unanimously penned by Fleischer. by the foreign ministry’s lawyers at the 1958 Geneva conference,” Norway’s sovereignty This Act no 12 of 21 June 1963 – including undefined bounda- says Fleischer. “When oil was later over the continental on exploration for and exploi- ries with the other North Sea found, however, a number of shelf has never been in doubt, says Carl tation of submarine resources states. states discovered it didn’t pay for August Fleischer. served as enabling legislation and Problems might have arisen them.” remained in force until the first here – not least because of the According to Norway, this Petroleum Act of 1985. Norwegian Trench, a submarine principle should apply without It declared that resources valley up to 100 kilometres wide reservations. And it maintained ment a management tool in this proclamation of sovereignty is parts of Norway’s North Sea sec- on and beneath the seabed off which hugs Norway’s south-west that the Norwegian Trench had area. necessary. tor. Norway were state property, coast. no significance. Where the sovereignty issue is “But if you’re going to for- The country ran the risk that and that it was for the Crown to This feature descends to “But we ran the risk of some- concerned, Fleischer sharply criti- bid somebody to do something these players might take mat- decide who could pursue off- depths of more that 700 metres. body pushing the opposite argu- cises an assertion in a 1992 his- in Norway, you have to have ters into their own hands, make shore operations. Had the boundary been drawn ment,” Fleischer points out, and tory of Norwegian oil – which has enabling legislation,” Fleischer discoveries, install platforms and Such an outcome was by on the Norwegian side of it, the says that the result could have since become received wisdom – explains. claim ownership of discoveries in no means given. Denmark, for country’s oil adventure would been lengthy legal disputes. that the continental shelf was not Although nobody could know the area. example, chose a completely dif- never have happened. “And if you do end up in under national jurisdiction. whether oil existed in the sub-sur- So getting an Act in place ferent model, giving shipowner A Fleischer joined the ministry court, you basically never know “That’s completely wrong,” face off Norway, he says that this was a matter of urgency. Fleischer P Møller a sole licence to produce in 1960 to work on one of the how things will turn out.” One he says. “I can’t think who the was not reason enough to refrain observes that work on a piece of oil along with Gulf and Shell. biggest and most difficult foreign lesson he is happy to pass on is authors can have talked to.” from safeguarding the country’s legislation in Norway can take 20 Phillips had sought a similar policy issues of the day – extend- never to become involved with He points out that the UN’s national interests. years or more, and neither the solution in Norway, but failed ing Norway’s fishing limits from the international legal system. Geneva conference on the law of “The probability was relatively justice nor the industry ministries to achieve it – something four to 12 nautical miles. Fortunately, the UK represent- the sea in 1958 made it unequivo- high, or at least sufficiently high were moving fast enough to sat- Norwegians and tomorrow’s pen- Experience from these negoti- ative at the Geneva conference cally clear that the coastal state to be worth passing a law.” isfy Evensen’s team. sioners have every reason to be ations, and the knowledge gained had stated openly that a chance has sole rights to the continental According to Fleischer, there The industry ministry had pleased about. about international law and poli- depression like the Norwegian shelf. was no reason to underestimate its hands full anyway, in part After the Act had been unani- tics, proved very useful when the Trench should not play any role. Nobody else can conduct the oil industry. Several com- because of the Kings Bay min- mously passed by the Storting offshore boundaries with Britain In reality, therefore, the activities there without the coast- panies had already begun to ing disaster which occurred in (parliament) on 21 June 1963, and Denmark came to be drawn. median line negotiations with al state’s consent. And no formal prepare seismic surveys covering Svalbard during November 1962. administrative responsibility for The Geneva convention on Britain presented no difficulties,

8 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 9 the minor things around Ekofisk.” the University of Oslo. He is now But the error was discovered and a professor emeritus in jurispru- the boundary corrected. dence. The Danes were next in line, His professional career has and negotiations with them were thereby been a combination of more complicated since, according academia and practical foreign Nils B Gulnes and to Fleischer, they tried their hand policy. Over the years, he has his colleagues in the at double-dealing. negotiated with other govern- Ministry of Industry were allowed to work They sought an agreement ments on pipelines, tax rules and for five years without on the median line with a secret unitisation of shared offshore political interference. clause which would allow any deal petroleum deposits. “And that meant we could create a to be renegotiated if this principle “Among other things, I helped system which is still was not accepted by other North to make Statoil a big company,” he doing its job today,” Sea states. observes. he says. “I don’t believe the result A story has circulated among Under the unitisation agree- would have been the the Danes in later years that they ment on Statfjord with the UK same with political “lost” Ekofisk to Norway because government, which he helped to involvement.” of the Danish foreign minister’s negotiate, Statoil was to take over irresponsible relationship with as operator of this field from alcohol. USA’s Mobil after ten years. Fleischer rejects this tale as The British nevertheless assert- pure myth. Had the request for ed that they could demand the Fleischer has alter- says Fleischer, who had a special a secret clause been accepted retention of Mobil. But Fleischer nated during his responsibility for them as acting by the Norwegian negotiators, was unbending – consent for a long working life head of division. however, Ekofisk could well have change of operator was already between academia A boundary line treaty was ended up in Denmark’s sector. enshrined in the original deal. and practical for- In at the start signed by the two countries on The distance from this major He maintains that the eign policy. 10 March 1965, just a year after field to the boundary with the Norwegian government was ini- Law graduate Nils B Gulnes was the first person hired by the Ministry of Industry the UK had contacted Norway to Danes is not great, so a relatively tially ready to yield to the UK view. to deal with “oil”. He got the job in late 1964 because his future boss heard from secure a clarification of this issue. minor adjustment might have put But its resolve stiffened after he The British had sent maps to it on the other side. had provided Knut Dæhlin, the a neighbour that he could probably speak English. the foreign ministry, which were “If we hadn’t found a solu- senior industry ministry official validated by Norwegian mapping tion in 1965, we might have had leading the negotiations, with | Bjørn Rasen and Sverre Christian Jarild (photos) experts. Fleischer remembers “as to continue talks with Denmark,” legal arguments. if it were yesterday” lying on the Fleischer concedes. “And, depend- The government refused floor of his fine office and study- ing on how weak our negotiators to allow Mobil to continue, and The first administrative and leg- company. He says it has been a meant he could probably speak ing the maps with colleague Leif were, a different solution in our Statoil could thereby move into islative work for the coming oil fantastic 50-year journey. English. Terje Løddesøl. disfavour might obviously have the driving seat for the North Sea’s nation was done by the Ministry of The Ministry of Industry took “She suggested I paid Haga They could find no fault with been possible.” biggest oil field in 1987. Foreign Affairs, with senior official over the baton from the foreign a visit,” Gulnes recalls. “After a them, but Fleischer had heard In the end, the Danes yielded “When things get too dif- Jens Evensen taking the lead. ministry on 1 January 1965, and its 30-minute chat, he asked me to that paper could shrink and cause and a treaty based on the median ficult, we usually turn Fleischer “His presence was a godsend,” mining office was given the job of pen two lines: ‘I hereby apply for distortions. For safety’s sake, he line principle and without secret loose on them,” Dæhlin is alleged says Gulnes. “The way he worked launching Norway’s first offshore the job of temporary secretary’. I wanted the Geographical Survey clauses was finally signed on 8 to have said by a central source – commercially minded, open to licensing round. was given the job on the spot.” of Norway to do an extra check. December 1965. in Norway’s oil administration. fresh ideas and not frightened The office already had many The geodesy specialists at the That occurred, in other words, “Them” in this case was the UK. to get involved in new things – duties, and was a little nervous Clean latter said that the UK had sent after the first-round licences had Fleischer has not been meant we got a very good system about taking on responsibility for over maps based on the Mercator been awarded. Because of the involved in active negotiations for the NCS. ” the oil business as well – with the Gulnes began work on 2 January projection without correcting for unclear position, Norway held during the present century, but is The continental shelf com- English skills that this called for. 1965. After that, everything hap- the fact that the Earth is actually back from including some blocks much in demand by the foreign mittee chaired by Evensen, with Applications were invited pened fast. The legislation was in spherical. along the proposed boundary. ministry as an adviser. Leif Terje Løddesøl as secretary from lawyers who could speak place by 9 April, and 278 blocks This meant that the boundary He looks back on the events of and lawyer Carl August Fleischer, the language and would work on on the NCS were put on offer four line was displaced closer to the more than 50 years ago, and char- submitted the recommendation something called “oil”. Nobody days later. Norwegian coast, and would in Rotating acterises the 1963 Act as Norway’s which led to the royal decree of 9 responded. “It was Norway’s biggest-ever other words give the British a big- “most extensive law on property April 1965 on petroleum explora- Division head Thorgrim Haga licensing round,” Gulnes says. “We ger area than they were entitled Fleischer is no ivory-tower theorist, ever in geographical terms.” tion and exploitation on the NCS. was worried and asked his neigh- received 11 applications by the 15 to. but has spent 55 years rotating And he concludes: “We must Aged 79, Gulnes retired on bour whether she knew a forth- June deadline, and awarded the Although it only involved a between the foreign ministry – admit in retrospect that we were 31 March from his final employ- coming law graduate who might first licences on 17 August.” few kilometres, Fleischer says the where he remains a special adviser pretty farsighted and pretty ment as adviser to the Norwegian work for him. The woman said Nine of the 11 applicants were deviation could have cost “some of on international legal issues – and smart.” subsidiary of Japan’s Idemitsu oil Gulnes was a naval officer, which successful. The round embraced

10 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 11 Without the advice from the British about the work programme, it could have taken many more years before we’d found oil.

Nils B Gulnes quit the all the blocks south of the 62 paral- help from the British to draw up ery of Ekofisk, Gulnes emphasises. industry ministry as a lel (the northern boundary of the Norwegian legislation – but this “Operator Phillips came to us in deputy director in 1973 North Sea) except for some along differed in some respects from the 1969 and said it had drilled four to build up the oil depart- ment at DnC over 12 the boundary with Denmark. UK provisions. times without success. years and then to serve A lot has been said and written In Gulnes’ view, Norway was “The company wanted to skip as the head of Amerada about Norway’s North Sea bound- fortunate. During negotiations on the final well in the programme. Hess’ Norwegian sub- sidiary for 15 more. He ary with the Danes, but Gulnes the North Sea boundary, the British We answered that this was fine, but subsequently worked as maintains that most of this is rub- agreed that the Norwegian base it would then have to pay what the a lawyer for a decade bish. There was never any question line should be drawn to include the well would have cost.” until reaching 75, and ended his career on of Ekofisk becoming Danish. country’s outermost islands. The US operator also had 31 March at the age Noting that the relevant “That was fantastic, given that Ocean Viking on a long-term char- of 79 as an adviser for documents become public this the UK had no equivalent to our ter. So it opted to drill the last well Idemitsu. year, after half-a-century, he says skerries. This concession gave us – and discovered Ekofisk. nobody is likely to find any nug- a bigger share of the continental “Without that advice from the gets of gold there. shelf.” British about the work programme, “Most things were dealt with The initial well drilled in 1966 it could have taken many more after all, because the govern- negotiated with the oil companies. the state oil company accordingly orally and we didn’t have time to found sedimentary rocks. So the years before we’d found oil,” says ment meets the bulk of the bill for We’d become licensees and sat in developed along different lines write it all down. We solved the first requirement for oil was in Gulnes. employees. licence management committees. than originally envisaged. problems and didn’t commit that place. The politicians began to get Ekofisk is now halfway through “Pay is a tax-deductible operat- That was a hopeless role.” Gulnes recalls that some much to paper.” interested after Ekofisk was found its producing life, and he recalls ing expense, and retaining people The ministry had three hats. wanted Norsk Hydro to take this Report no 22 to the Storting in 1969. that the original recovery factor for accordingly costs little. However, It was responsible for safety on role, and the Borten government (parliament) in 1965 was the first “Prime minister Per Borten the field was 12-14 per cent of the things are different for the supplies the NCS, it acted as the licensing increased the state stake in the White Paper to deal with oil, and ordered all members of the oil in place. industry.” authority, and it handled the gov- industrial group from 48 to 51 per Gulnes says that the politicians had Cabinet to take lessons from us on “We’re now up to 50 per cent. He says that this is not the first ernment’s commercial interests cent. no comments. the oil business,” Gulnes explains. That’s quite fantastic. Technological time the industry has suffered a through deals with the companies. “That wasn’t what we wanted. “I was so disappointed. There “We lectured from 17.00 to progress has been incredibly rapid. depression. In 1969, the oil com- This was an untenable position. We couldn’t give a free gift to the was a 30-minute debate, which 22.00. Borten was interested. When Norwegian industry was interested panies – including Phillips – said Gulnes says the safety respon- 35 per cent of Hydro’s shareholders focused largely on whether seis- the rest of the ministers left, he from the start and saw the oppor- they wanted to pull out of the NCS sibility was not made any easier who were French citizens. That was mic surveys could damage fish- kept us behind for another hour to tunities. because they did not believe any because Norway already had a out of line with our thinking in the ing activity. Few people, if any, learn more.” “Shipping companies and fish- oil was to be found. Labour Inspection Authority, a ministry.” believed in the oil business.” The Storting’s standing com- ing boat owners were quick to “That was perhaps our first oil Maritime Directorate and a Civil Nor were the civil servants mittee on industry also wanted adapt their vessels. And Aker built crisis. And a number of people in Aviation Authority. keen on getting three Norwegian lessons. “That gave us an advan- the first Norwegian platform as the ministry wondered if we hadn’t If these three were allowed to oil companies – Statoil, Saga Best tage, because we got to shape well as developing new concepts.” backed the wrong horse.” act independently, the ministry Petroleum and Hydro. But Den them,” says Gulnes. Gulnes cannot see that the felt the oil companies would find norske Creditbank (DnC) wanted to At the same time, the lack of business he has now left is even themselves in an impossible posi- merge various small players. debate on the big issues in the close to being a sunset industry. On Revenues tion – and prevented from doing “At a lunch, the bank asked if Storting was the best that could Meetings the contrary, he thinks Norway’s oil their job. Coordination was neces- we were opposed to the merger of happen. Gulnes says they were sector will last for at least another Gulnes and his industry ministry sary. several small enterprises into a sin- able to work for five years without He highlights the many working century. colleagues – Fredrik Hagemann “We needed a technical agency gle Norwegian company,” Gulnes political interference. meetings held by the industry He points to the recent mas- (see separate article), Olav K to help us, which became the NPD, reports. “We said it was fine. So we “And that meant we could cre- ministry team with Angus Beckett, sive Johan Sverdrup discovery as Christiansen and Iraqi geologist and then a company which could got Saga.” ate a system which is still doing under-secretary at the time in evidence that “it’s never too late to Farouk Al-Kasim – began to see the deal with the government’s com- At the end of his professional its job today. I don’t believe the Britain’s Ministry of Power. explore”, and feels today’s debate is revenues rolling in. mercial interests,” Gulnes explains. career, Gulnes sums up the devel- result would have been the same “He gave us the most valuable based on a misunderstanding. “Some of us wanted Norway to “Our aim wasn’t to build up a opment he has witnessed from the with political involvement. That advice we could get – namely, that “We’ve had oil price reductions buy controlling interests in non-oil state oil company. That came later. sober society of the 1960s to an wouldn’t be possible today.” we should have a work programme several time. They last a few years, companies, like Nestlé, in order to What we wanted was an equiva- international community today. Gulnes recounts how, as secre- which was expressed in wells down and then recover. The oil compa- develop other types of Norwegian lent to today’s state-owned Petoro “Norway’s become a com- tary to the petroleum council, he to a certain depth rather than in nies have again been stupid and industry,” he says. enterprise.” pletely different country. We’ve wrote letters with Evensen in the money spent.” started firing people. “That idea was proposed in But that was not how it turned managed to handle all the money foreign ministry, which then landed The UK had found in 1964 that “Then they have to start anew 1971-72, but it didn’t happen, of out. Arve Johnsen and Jens we’ve gained. But the wealth hasn’t on his desk at the industry minis- drilling wells was very costly, and later. That’s very short-sighted, and course. In the end, we got the Christian Hauge, respectively presi- only been good for us. try. “And that was that. The senior a work programme specified in reflects their preference for think- petroleum fund. I didn’t agree with dent and chair of Statoil, had other “We’ve become a bit spoilt, and ministry officials supported us in cash was soon exhausted. Nor did ing in terms of quarterly results. it at the time. ideas. things are a little too easy for us. everything we did.” the government have any way of “Their focus is on the stock “We also wanted a holding And Finn Lied came into gov- At the same time, it’s created an The basis was laid before 1965, enforcing further activity. market, which is destructive for a company to look after the agree- ernment with the Labour Party. incredible range of opportunities when Evensen and his team got That was crucial to the discov- long-term business. And it’s silly, ments on state participation we’d This trio knew each other well, and for many people.”

12 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 13 14°W 12°W 10°W 8°W 6°W 4°W 2°W 0° 2°E 4°E 6°E 8°E 10°E 12°E 14°E 16°E 18°E 20°E 22°E 24°E 26°E 28°E 30°E 32°E 34°E 36°E 38°E NØ 3000 KEN BAN 200 RAL NORDFLAKET N SENT N N NKE MIDT SPITSBERGENBANKE RALBA ENT 0 30 S ST 0 Uttviinniingslløyve per 16..jjunii 2014 00 VE 2

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Wintershall 0 the UN Convention on the Law of the Sea 10 55°N 0 Awards in predefined areas (APA) Stratigrafisk avgrensa utvinningsløyve 200 35/2-1 55°N Knarr Tilbakeleverte utvinningsløyve 62°N 0° 10°E 20°E 30°E 0 34/4-11 20 33 0 34/4-10 ETOPO2v2 Global Gridded 2-minute Database, National Geophysical Data Center, 150 Statfjord Nord http://www.ngdc.noaa.gov/mgg/global/etopo2.html. 27 Sygna 7220/4-1 72 34/6-2 S 226 67°N 33/9-6 Delta Snorre È) 7220/8-1 7 H ) 7225 0 # arstad 3 ÈJohan Castberg 7224 10 4 7223 Murchison 34/7-hV-2igdis 34/8-17 S 7222 NORDLAND È) 7220 7221 00 Visund 72È)20/7-3 S 10 VII Statfjord Øst 35 7220/7-2 S 0 Visund Sør Vega È) 0 Tordis 5 34/10-C-18 A 2 Statfjord Gimle 35/9-6 S È) È) 34/11-2 S Nøkken 68°N Gullfaks 34/10-54 A 35/8-3 0 Narvik 72°N 0 # È)Gu3l4lf/1a0k-5s4 S Sør 35/9-7 0 34/10-52 B 34/12-1 7222/11-2 2 33/12-9 3S4/10-52 A Gjøa È) 35/12-2 7222/11-1 Kvitebjørn 0 35/11-13 Fram H-Nord 0 35/11-17 5 35/10-2 0 È) 1

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2 9 INGB 650 A 435e 67 Gina Krog 15/5-2 Eirin 16/2-6 S n 46 65 SE r 650 10 16/4-6 S NG o 124 8 Johan Sverdrup ET- N NOR II 644 0 7 DLAN 15 59°N Skuld t95 55 D r 591 65 IV 433 o 09 477 p 5 B47 s 91 Sleipner Vest 7 479 n B a 1 tr HEI 3 0 M 1 s 645 DR 0 2 OR 34 C s UN 0 0 15/8-1 Volve Alve VIN 0 a 3 6608/10-15 3 94 7G56 Brøn 16 n nøysun Alpha Marulk 64°N ru # d 6607/12-2 È)S Urd 557 13 d YTT 4 H ei ERGR Gungne KRI 59 2 YTA È) STIN B 134 0 B63 C 0 Sleipner Øst 65 64 590 20 1 02 6507/3-8 01 19 062 7 4 557 B 9 094 B 26 Sigyn 65°N 4 3 ÅSG Norne 5 75 BS 47 263 B ARD 6 66°N 640 257 475 C 5 0 15/12-21 50 2 6 S 74 200 18 3 6507/3-7 091 475 754 237 Skarv 09 073 1 D 073 B D Varg 6 640 074 B 50 3 589 4 7 6 5 Rev 65 8 40 10 TYRI 473 05 4 HANS MI 9 64 25 KKEL 17/12-1 3 5 092 6 6 6506/6-1 750 64 6 Gaupe 506 05 90 121 TRØ Bream 511 NDEL 6 AG I 650 406 312 18/10-1 6507/7-14 S 7 10 312 B 6508 596 11 753 6 6507/7-13 1 107 407 2 D 587 348 6506/9-2 S 10 0 400 Morvin 7 B HYM 93 B 200 E 158 093 E Heidrun 107 6506/9-3 C 348 B 093 D 6507/10-2 S D 1 093 rau 07 NJO D È) ge 701 RD RAU Åsgard 00 584 n 132 GEN Kristin 20 Ga 58°N ss 176 e Nam Brynhild e p sos Yttergryta 700 ks port 09 i 6408 # 3 C p 00 Yme n 5 7 6506/12-3 Lysing e t 5 l 63 86 a 6507/11-6 Sigrid 63°N 01 751 752 H 4 6506/11-2 Lange 00 0 6406/3-86407/1-6 S 0 6406/2-7 Erlend 64°N 5 63 TRØ 8 1 02 ND 6406/3-2 ELA 0 6406/2-1 Lavrans 689 G II 0 Tyrihans M 3 64 Trestakk ØR 6 ORMEN 1) Mime 03 6407/2-5 S 65°N EB 303 LAN 642 9 ASS 698 GE EN Felt og funn Cod 6407/2-6 S GE 20 640 T 630 9 7/12-5 4 4 200 Ula 10 749 6 6 405 6406/6-3 Mikkel 305 Olje È) 10 208 6 8/10-4 S 64 00 0 306 06 6407/6-6 0 Oselvar Tambar 2 3 583 Mikkel Sør 50 6406/9-1 Gass Blane Tambar Øst 6407/7-8 6407 Linnorm È) 6407/9-9 6407/8-6 A O Gyda È) 6407/8-6 Draugen r Olje m/Gass m TJE 69 $ LDBER 9 e GODD n EN 2/3-1 0 Albuskjell 0 L a Tr 1 2/4-21 Njord 2 n ondhe Stjørd g # im# al Hyme 64 t e Gass/Kondensat Flyndre 08 r o P 2/4-17 Tjalve 6 p L 20 s -B 1 n K 57°N ra 0 rist Tor 6406/12-3 S 5 T 0 # ian 00 1 sund 5 rd È) Vest Ekofisk 2/5-3 Sørøst Tor È) a Nyare funn utan omriss 4 g 62°N s 2 3 620 Å Tommeliten Gamma 2 1 63°N 0 1/9-1 Tommeliten Alpha Ekofisk 639 0 1) Funn i ressursklasse 6 (Utvinning $ NYHA 6 6 MNA 203 205 lite sannsynleg) er ikkje namnsett Edda Eldfisk Ormen Lange MØ M RE 688 620 # olde 64°N SØ 4 20 Trym 5 R 0 Hod 3/7-8 S 6 19 Embla 304 640 M Aktive utvinningsløyve ØRE I Ål 2/12-1 6 64 # esun Valhall 305 55 1 d Mjølner 0 20 40 60 80 5 0 0 Tilbakeleverte utvinningsløyve Km 630 4 6 3 579 63 18 C 8 4°E 6°E 0 25 50 75 100 63 7 Km 6 37 B 269 748 373 S 318 K 6°E 8°E 10°E 3 3 3 NA 27 270 33 75 0 RR 0 B 687 M S 75 B 0 ålø TAT 3 SN 31 # y Operatørar i aktive utvinningsløyve per 16.06.2014 F 7 OR 8 Operatørar i aktive utvinningsløyve per 16.06.2014 5 B JOR C RE 68 D N 05 554 5 ORD 037 7 5 MU F SYG 54 C RCH 037 NA Utv.løyve Blokker Operatørar Utv.løyve Blokker Operatørar Utv.løyve Blokker Operatørar Utv.løyve Blokker Operatørar Utv.løyve Blokker Operatørar Utv.løyve Blokker Operatørar Utv.løyve Blokker Operatørar S ISO D TA N 037 6 V 34 TFJOR C32 IGD 55 578 001 25/11 ExxonMobil Exploration & 054 31/2 Statoil Petroleum AS 146 2/4 Statoil Petroleum AS 299 2/1 Talisman Energy Norge AS 506 S* 26/5,8 Rocksource Exploration 623 15/11,12,8,9 Talisman Energy Norge AS 707 7127/5,6, 7128/4 Edison International Norway S D IS 3 554 B 63 T 5 6 0 61°N ATF ØST 86 62°N

J V 0 Production Norway AS Norway AS Branch ORD TOR ISUN 055 31/4 Wintershall Norge AS 147 3/7 DONG E&P Norge AS 300 2/1 BP Norge AS 625 25/10 Lundin Norway AS G DI D 2 037 IMLE S 120 35 001 B 16/1 Det norske oljeselskap ASA 507 25/2,3, 30/11,12, Tullow Oil Norge AS 708 7130/4,7 Lundin Norway AS GU 089 VEG Fl LLFA 1 VIS A 36 # orø 055 B 31/4 Wintershall Norge AS 148 7/4,7 Lundin Norway AS 303 15/5,6 Statoil Petroleum AS 31/10 626 25/10 Det norske oljeselskap ASA GU KS 20 B UN 7 682 LLF 050 6 D SØR 47 GJØ 006 2/5 Total E&P Norge AS 709 7224/6, 7225/4 Det norske oljeselskap ASA AKS 050 DS 84 248 1 A 509 BS* 30/4 North Energy ASA 63 SØR B B 95 42 055 C 31/4 Statoil Petroleum AS 148 B 7/8 Lundin Norway AS 303 C 15/5 Statoil Petroleum AS 627 25/5,6,8,9 Total E&P Norge AS field 1 19 6 19 0 636 006 B 2/8 BP Norge AS 710 7218/12, 7219/10,11 Total E&P Norge AS 03 3 E 33 68 5 B 153 7 E 050 1 3 1 509 CS* 30/1 North Energy ASA 15 93 B 2 2 418 53 B 055 D 31/4 Wintershall Norge AS 150 24/9 Marathon Oil Norge AS 309 B 30/3 Statoil Petroleum AS 628 25/6,9, 26/4,7 Statoil Petroleum AS 1 2 193 93 48 006 C 2/5 Lundin Norway AS 711 7218/4,5,6,7 Repsol Exploration Norge AS 00 277 050 C asseksport 050 ES 19 Gjøa G 509 S* 29/3,6, 30/1,4 North Energy ASA 037 0 F5S 193 3 09 057 34/4 Statoil Petroleum AS 150 B 24/9 Marathon Oil Norge AS 309 C 30/5,6 Statoil Petroleum AS 629 25/1,2,4,5 Centrica Resources (Norge) B 0 0 H D K 09090 C0 B 018 2/4,7, 7/11 ConocoPhillips Skandinavia 712 7218/6, 7219/4 Eni Norge AS 7 50 DS VITE 293 0 HS090 AS 46 S 05 BJØ B F 378 062 6507/11 Statoil Petroleum AS 152 33/12 Statoil Petroleum AS 312 6407/6 Statoil Petroleum AS 510 6406/5,6 Maersk Oil Norway AS 0500 GS VA RN 09 AS F r $ C LEM 248 C 0 G RAM 630 31/1, 35/10 Statoil Petroleum AS 713 7219/2,3, Statoil Petroleum AS 5 ON K H ø 0 v -N r 9 S 7 6i 3 OR 0 018 B 1/6 ConocoPhillips Skandinavia 511 6406/5,6,9 Wintershall Norge AS 45 H te0 37 e 064 7120/8 Statoil Petroleum AS 153 35/9, 36/7 GDF SUEZ E&P Norge AS 312 B 6407/5 Statoil Petroleum AS S UL b 09 8 j D 7319/11,12 0 D j 0 B l RA ørn 631 33/12,9 Lundin Norway AS O 3 AS 29 74 6 516 6608/10 Statoil Petroleum AS 714 7220/2,3 Statoil Petroleum AS 7443 F 090 E 81 a 065 1/3 BP Norge AS 153 B 35/9 GDF SUEZ E&P Norge AS 316 B 9/1 Talisman Energy Norge AS R ø 018 C* 1/5 Maersk Oil Norway AS 5 05 55 A O j 632 33/9 Statoil Petroleum AS 09 2 B S S 0 M l CS 0 je55 G 519 6201/11,12 Lundin Norway AS 715 7220/3, 7221/1,2,4,5 Det norske oljeselskap ASA 51 rø 1 072 16/7 ExxonMobil Exploration & 158 6407/8 A/S Norske Shell 316* 9/2,5 Talisman Energy Norge AS 50 r

9 0 018 DS* 1/5 Maersk Oil Norway AS 6 3 VES 0 633 34/11,12,8,9 Wintershall Norge AS 79 0 L 0 85 0 Production Norway AS BS S 9 B 052 7 EFR 54 C 0 522 6604/2,3,4,5,6 BG Norge AS 716 7318/11,12 Eni Norge AS

42 IK 2 159 6507/3 Statoil Petroleum AS 318 35/2 Statoil Petroleum AS 30 K 0 019 7/12 BP Norge AS 9 K 072 B 16/7 Statoil Petroleum AS 635 35/5,8 Bayerngas Norge AS v 4 04 C 0 it 527 6703/10,11,12,7,8,9, Chevron Norge AS 717 7321/10,11 Eni Norge AS 0 30 C 55 e Troll O Tro 159 B 6507/3 Statoil Petroleum AS 318 B 35/4,5 Statoil Petroleum AS M 4343S OS C b ljerør ll O AR D BS EB j 1 lje 019 B 2/1, 7/12 Talisman Energy Norge AS TIN S ER 741 ø rør ll 072 C 16/7 Statoil Petroleum AS 6704/10,7,8 636 36/7 GDF SUEZ E&P Norge AS LI 0 G ØST rn NGE 43 TU 05 sess 159 C 6507/3 Statoil Petroleum AS 318 C 6203/10 Statoil Petroleum AS 718 7317/5,6,8,9 ConocoPhillips Skandinavia N 5 o E 05 D r 019 C 2/1 Talisman Energy Norge AS 528 6707/11,8,9 Centrica Resources (Norge) 3 05 G 08 p M 072 D 16/7 Statoil Petroleum AS 637 33/3, 34/1,2 Suncor Energy Norge AS 040 5 B a 5 t $ ONGS AS 055 ss s TAD 3 034 rør TR e 159 D 6507/3 Statoil Petroleum AS 327 6705/11 Statoil Petroleum AS AS 0 BRA OLL V 019 D 2/1 Talisman Energy Norge AS 073 6407/1 Statoil Petroleum AS 637 B 33/6 Suncor Energy Norge AS 719 7321/8,9 Centrica Resources (Norge) 0 0 GE t 53 528 B 6707/10 Centrica Resources (Norge) r 0 OS 079 B 167 16/1 Statoil Petroleum AS 327 B 6705/10 Statoil Petroleum AS AS o E 1 1 B 85 O p ERG seb 024 25/1 Total E&P Norge AS 073 B 6406/3 Statoil Petroleum AS AS 638 34/2,3,6, 35/1,4 BG Norge AS s e 0 19 O rg O 720 7317/4,5,6 E.ON E&P Norge AS 61°N n 1 0 SEB 3 ljet STU 0 9 1 ra R a 0 B ER ns $ A 167 B 25/10 Statoil Petroleum AS 333 2/4 Statoil Petroleum AS 529 7016/2, 7116/11 Eni Norge AS r G por 60°N 1 10 740 SØR 0 t 025 15/3 Statoil Petroleum AS 074 6407/2 Statoil Petroleum AS 639 6201/10,11,7,8 Tullow Oil Norge AS st 4 85 B 5 s KO 721 7321/4 RWE Dea Norge AS 7 a L 4 035 10 $ LSNE 169 25/11,8 Statoil Petroleum AS 333 B 2/4 Statoil Petroleum AS 532 7219/9, 7220/4,5,7,8 Statoil Petroleum AS C 4 d S G B 026 25/2 Total E&P Norge AS 074 B 6407/2 Statoil Petroleum AS 640 6201/12, Talisman Energy Norge AS e l a 722 7322/6, 7323/4 GDF SUEZ E&P Norge AS e r 03 1 5 7 g 3 169 B1 25/11 Statoil Petroleum AS 338 16/1 Lundin Norway AS d 1 2 l B 533 7219/12, 7220/10 Eni Norge AS 6202/10,11,7 n 3 026 B 25/2 Det norske oljeselskap ASA u a 077 7120/7 Statoil Petroleum AS t 0 L 57 H r 0 641 6204/10,11,7,8 VNG Norge AS 723 7323/3, 7423/12, GDF SUEZ E&P Norge AS 3 S 2 o 169 B2 25/11 Statoil Petroleum AS 340 24/9 Marathon Oil Norge AS 5 72 p 027 25/8 ExxonMobil Exploration & 534 7224/11,7,8 BG Norge AS 49 s B 078 7120/9 Statoil Petroleum AS 7424/10 S n erg N a # en OR OD 0 r Production Norway AS 642 6306/2,5 Repsol Exploration Norge AS DØ IN 35 t 169 C 25/8 Det norske oljeselskap ASA 340 BS* 24/9 Marathon Oil Norge AS 535 7225/3, 7226/1 Total E&P Norge AS 724 2/5,8 Det norske oljeselskap ASA ST B s 5 FR s 07 079 30/9 Statoil Petroleum AS IGG 36 L a 739 027 B 25/8 ExxonMobil Exploration & 643 6406/1,4,5 VNG Norge AS F 2 ILLEG- S 169 D 25/11,12 Statoil Petroleum AS 348 6407/8,9 Statoil Petroleum AS 535 B 7225/2 Total E&P Norge AS 725 3/7,8 Premier Oil Norge AS RIG g F G 024 r RI Production Norway AS 085 31/3,5,6 Statoil Petroleum AS e GG ØS b 644 6506/10,11,8 OMV (Norge) AS T F e 169 E 25/8 Statoil Petroleum AS 348 B 6407/8 Statoil Petroleum AS RIG 4s4 027 C 25/8 ExxonMobil Exploration & 537 7324/7,8 OMV (Norge) AS 726 3/4,5 Premier Oil Norge AS 46 G O 2 085 B 31/9, 32/4 Statoil Petroleum AS 0 Production Norway AS 645 6507/10,7 Faroe Petroleum Norge AS 6 026 7 6 r 171 B 30/12 Statoil Petroleum AS 359 16/1,4 Lundin Norway AS 539 3/7 Premier Oil Norge AS 727 3/5,6,8,9 Edison International Norway 29 B 38 78 S rø 67 026 je 027 D* 25/8 Det norske oljeselskap ASA 085 C 31/3,6 Statoil Petroleum AS 7 VAL F ll 08 VI E RØY 5 O 3 646 6507/8,9 Wintershall Norge AS Branch 8 LJ 364 06 e 0 176 6407/12 A/S Norske Shell 362 25/1,2 Lotos Exploration and 541 4/4 Repsol Exploration Norge AS E 249 67 BSn 203 737 8 a 0 088 BS* 24/6 Marathon Oil Norge AS A HEI B 036 S r 027 ES* 25/8 Det norske oljeselskap ASA Production Norge AS 728 3/3, 4/1,2,3 DONG E&P Norge AS d LVH MD D BS G 648 S* 6507/1,2 PGNIG Upstream International le EI AL0 10 185 31/7 Wintershall Norge AS 544 16/4 Lundin Norway AS er M 36 2 F AT st 03 BS10 LA 088* 24/6 Centrica Resources (Norge) 364 25/2,5 Det norske oljeselskap ASA e 088 6 C 2 G 028 B 25/10 Det norske oljeselskap ASA AS 729 2/1 Centrica Resources (Norge) V 0 BS 03 187 15/3 Statoil Petroleum AS 0 1 6 1 AS 546 25/11,12 Lundin Norway AS 50 B 2 1 02 E 373 S* 34/2,3,5,6 BG Norge AS 650 6507/3 E.ON E&P Norge AS AS

1 0 0 1 1 3 735 2 C 02 028 C 25/10 Statoil Petroleum AS VO 50 7 1 S SK 089 34/7 Statoil Petroleum AS 190 30/8 Statoil Petroleum AS 730 7/11 E.ON E&P Norge AS LUN 36 S 02 D IRN 549 S* 25/1, 30/10 Det norske oljeselskap ASA 651 6610/11,12,8,9 E.ON E&P Norge AS B D 10 627 E 028 S* 25/10 ExxonMobil Exploration & 375 34/4,5 Suncor Energy Norge AS ØYL 30 2B 25 506 D 090 35/11 Statoil Petroleum AS A 504 B 7 B S 190 B 30/7,8 Statoil Petroleum AS 550 31/1,2 Tullow Oil Norge AS 731 8/10 Centrica Resources (Norge) 5 16S JO 50 Production Norway AS 653 6607/3 RWE Dea Norge AS 34 6 004 C9 C TUN 6 CS 375 B 33/6, 34/4 Suncor Energy Norge AS AS 0 76 S 527 DS JET 090 B 35/11 Statoil Petroleum AS 3 0204 T 62 00 028* 25/10 ExxonMobil Exploration & 193 34/11 Statoil Petroleum AS 551 31/2,3 Tullow Oil Norge AS 240 B 57 7 ES E 8 26 2 375 C 33/6 Suncor Energy Norge AS 655 6610/2 Wintershall Norge AS 732 7/9, 8/7 Maersk Oil Norway AS 4 S 1 027 ll A Production Norway AS 60°N

1 C e 090 C 35/11 Statoil Petroleum AS 6r B

0 9 E ip l 193 B 34/11 Statoil Petroleum AS ø 553 34/7,8 Det norske oljeselskap ASA 27 p l 029 15/6 ExxonMobil Exploration & 656 6610/2,3, 6611/1,2 E.ON E&P Norge AS 733 9/5,8,9 Faroe Petroleum Norge AS r e 506 e 378 35/12 Wintershall Norge AS s R e Sp 59°N s IN Z i GH p 090 E 31/2 Statoil Petroleum AS 0 a Production Norway AS 193 C 34/11 Statoil Petroleum AS 554 34/6 Total E&P Norge AS 02 0116 1 ORN e 657 7122/8,9 Eni Norge AS 8 G 9 69 E e 378 B 35/12 Wintershall Norge AS 734 10/4 Wintershall Norge AS B 028 S B2 D ØST Z AL e 029 B 15/6 Statoil Petroleum AS 090 F 35/11 Statoil Petroleum AS 6 DER n 193 D 34/11 Statoil Petroleum AS 554 B 34/9 Total E&P Norge AS 75 a O r s 658 7121/2,3, 7122/1,2 DONG E&P Norge AS 626 # lo 393 7124/6, 7125/4,5 Statoil Petroleum AS 735 S* 25/4,7 Bayerngas Norge AS A long-standing fascination with the 02 16 G 8 C9 B1 00 Hau 029 C 15/6 Total E&P Norge AS 090 G 35/11 Statoil Petroleum AS IV 02862 S GR 1 # gesu 193 E 34/11 Statoil Petroleum AS 554 C 34/5 Total E&P Norge AS AR A B 5 VAL ANE nd 393 B 7125/4,5 Statoil Petroleum AS 658 B 7121/5,6, 7122/4 DONG E&P Norge AS 736 S* 25/7 Marathon Oil Norge AS GUD ASEN 1 169 IN 033 2/11 BP Norge AS RU 67 B 546 $ SNUR 090 HS* 35/11 Statoil Petroleum AS 195 35/8 Statoil Petroleum AS N 00 1 REVA 555 33/2 Lundin Norway AS 659 7121/3, 7122/1,2, Det norske oljeselskap ASA 1 B 67 RDEN 405 7/12,9, 8/10,11,7,8 Centrica Resources (Norge) 737 S* 25/4,5 Dana Petroleum Norway AS 242 457 033 B 2/11 BP Norge AS 091 6406/3 Statoil Petroleum AS 6 KÅ 195 B 35/8 Statoil Petroleum AS AS 557 6406/1, 6506/10 OMV (Norge) AS 7221/10,12, 73 $ RSTØ 738 25/3 Tullow Oil Norge AS GLI 1 501 7222/11,12 TNE 87 EDVA 034 30/5 Statoil Petroleum AS 091 D 6406/3 Statoil Petroleum AS 199 6406/2 Statoil Petroleum AS 405 B 7/12 Centrica Resources (Norge) 025 338 2 RD 557 B 6406/1 OMV (Norge) AS 048 65 GRI AS 660 1/6 Faroe Petroleum Norge AS 739 S* 26/1, 31/10,11 Statoil Petroleum AS 048 B EG 035 30/11 Statoil Petroleum AS EN D 674 092 6407/6 Statoil Petroleum AS 201 7018/3, 7019/1 Eni Norge AS 558 6507/5 E.ON E&P Norge AS OCH 048 406 18/10 Premier Oil Norge AS 661 2/2,4,5 Total E&P Norge AS 740 30/9, 31/7 Faroe Petroleum Norge AS 3 E 029 GI 03 C B 359 50 035 B 30/11 Lotos Exploration and 093 6407/9 A/S Norske Shell NA K 2 50 203 24/6, 25/4,7 Marathon Oil Norge AS 559 6608/10,11 Rocksource Exploration ROG 048 303 1 B Production Norge AS 407 17/12,9 Premier Oil Norge AS 662 2/4 Total E&P Norge AS 741 31/4,5 A/S Norske Shell 029 410 093 B 6407/9 A/S Norske Shell Norway AS 1C5 035 C 30/8 Statoil Petroleum AS 203 B 25/4 Marathon Oil Norge AS 0 54 St 410 16/5 Lundin Norway AS 663 2/6, 3/4 Det norske oljeselskap ASA 742 30/3, 31/1,4 Dana Petroleum Norway AS SL 29 4 # avan 567 2/6 Premier Oil Norge AS EIPN VOL 569 ger 093 C 6407/12 A/S Norske Shell 208 6305/7 DONG E&P Norge AS ER VE 046072 Sleipner Kondensatrør 036 BS* 25/4 Statoil Petroleum AS 418 35/8,9 Wintershall Norge AS VES 04 C C 568 7/1,2 Talisman Energy Norge AS 664 S* 2/2,3 Talisman Energy Norge AS 743 S* 30/3 Wintershall Norge AS T 046 BS 503 C 093 D 6407/9 A/S Norske Shell 046 6 B 1 036 C 25/4 Marathon Oil Norge AS 209 6305/4,5 Statoil Petroleum AS GU SLE 6 ipe 420 35/9 RWE Dea Norge AS 665 S* 2/2,3, 3/1 Faroe Petroleum Norge AS 744 S* 30/3 Tullow Oil Norge AS NGN 072 IPN atp 569 16/4 Statoil Petroleum AS E B ER ØS St 093 E 6407/9 A/S Norske Shell 04 07 T 5 036 D 25/4 Marathon Oil Norge AS 211 6506/6, 6507/4 Total E&P Norge AS 6 D 2 D 03 B 433 6506/12,9 Centrica Resources (Norge) 571 25/10,7 Suncor Energy Norge AS 666 2/1, 8/10,11 Centrica Resources (Norge) 745 S* 29/3, 30/1,2 Statoil Petroleum AS 623 1 094 6506/12 Statoil Petroleum AS 072 7 211 B 6506/9, 6507/7 Total E&P Norge AS AS AS 03 2 036* 25/4 Centrica Resources (Norge) 746 S* 29/3 Rocksource Exploration 8 D 0 435 6507/7,8 RWE Dea Norge AS 573 S* 25/1, 30/10 Det norske oljeselskap ASA 59°N SIGYN 0 AS 094 B 6406/3 Statoil Petroleum AS 667 1/3 Total E&P Norge AS 503 212 6507/5,6 BP Norge AS Norway AS VA 6 62 18 037 33/12,9 Statoil Petroleum AS 438 7120/1,2,3,4,5 Lundin Norway AS 574 29/9, 30/10,7 Statoil Petroleum AS $ RG 72 2 095 6507/7 ConocoPhillips Skandinavia 212 B 6507/3 BP Norge AS 668 7/12 Centrica Resources (Norge) 747 35/8 Bayerngas Norge AS 038 58°N 038 E 037 B 33/12 Statoil Petroleum AS AS 442 25/2,3 Centrica Resources (Norge) 578 35/6 Idemitsu Petroleum Norge AS AS REV 212 E 6507/3 BP Norge AS 748 34/2,5 Det norske oljeselskap ASA 038 C 097 7120/6 Statoil Petroleum AS 669 7/12 DONG E&P Norge AS $ 292 B 037 C 33/9 Wintershall Norge AS AS 579 33/2,3 Lundin Norway AS 29 Statpipie 218 6706/12, 6707/10 Statoil Petroleum AS 749 6306/4,5 Centrica Resources (Norge) GA 2 NO 099 7121/4 Statoil Petroleum AS 448 7120/7,8,9 Statoil Petroleum AS 670 7/11,12 Tullow Oil Norge AS UPE 6 407 RDSJ 037 D 33/9 Wintershall Norge AS 583 6306/6,7,8,9 Tullow Oil Norge AS AS ØE 218 B 6607/1, 6707/10 Statoil Petroleum AS 457 16/1 Wintershall Norge AS 670 B 7/11 Tullow Oil Norge AS 750 6405/10,4,7 Tullow Oil Norge AS N 0 100 7121/7 Statoil Petroleum AS 584 6305/3, 6306/1, Lundin Norway AS 568 10 037 E 33/12 Statoil Petroleum AS 102 25/5 Total E&P Norge AS 219 6710/6 Statoil Petroleum AS 460 25/1 Det norske oljeselskap ASA 6405/12,9, 671 10/4,7, 9/3,6 Maersk Oil Norway AS 751 6407/11 Suncor Energy Norge AS 0 2 037 F 33/9 Statoil Petroleum AS

4 0

06 0 4 220 6710/10 Statoil Petroleum AS 6406/10,7 4 1 95 B 0 Aren 0 102 C 25/5 Total E&P Norge AS 473 6407/2,5 Statoil Petroleum AS 672 15/12, 16/10 Talisman Energy Norge AS 752 6407/12 Statoil Petroleum AS # dal 0 038 15/12 Talisman Energy Norge AS 586 6406/11,12 VNG Norge AS 102 D 25/4,5 Total E&P Norge AS 226 7222/1 Eni Norge AS 475 6406/3, 6407/1 Wintershall Norge AS 673 16/1 VNG Norge AS 753 6407/7,8 VNG Norge AS 038 C 15/12 Talisman Energy Norge AS 587 6407/8 Edison International Norway 102 E 25/6 Total E&P Norge AS 226 B 7222/2,3 Eni Norge AS 475 BS* 6406/3, 6407/1 Wintershall Norge AS 674 16/3,6, 17/1,2,4, E.ON E&P Norge AS 754 6407/2 Rocksource Exploration YM Branch 495 E Fa 038 D 15/12 Talisman Energy Norge AS 25/12, 26/10 Norway AS # rsund 102 F 25/5 Total E&P Norge AS 229 7122/10,7,8,9, Eni Norge AS 475 CS* 6406/3, 6507/10 Wintershall Norge AS 589 6406/2,5 Wintershall Norge AS BRYN Kris 038 E 15/12 Talisman Energy Norge AS 7123/7 675 24/11,12 Statoil Petroleum AS 755 6507/11,8 Statoil Petroleum AS HILD 316 B # tiansa petroleum industry meant young govern- 316 10 nd 102 G 25/5 Total E&P Norge AS 475 D 6407/1 Wintershall Norge AS 590 6507/10 North Energy ASA 1 7 0 229 B 7122/11 Eni Norge AS 48 0 040 29/9, 30/7 Total E&P Norge AS 676 S* 24/12,9, 25/7 Faroe Petroleum Norge AS 756 6507/10,7 PGNiG Upstream International 148 B 0 477 6506/11 Centrica Resources (Norge) 590 B 6507/11 North Energy ASA 4 103 B 25/7 Det norske oljeselskap ASA AS SK 043 29/6, 30/4 Total E&P Norge AS 230 7227/10,8,9 Statoil Petroleum AS 677 25/1,4 Det norske oljeselskap ASA 67 AGE AS 4 1 RRA 104 30/9 Statoil Petroleum AS 591 6507/11,8,9 Tullow Oil Norge AS 757 6506/1,4 VNG Norge AS 98 B 8 K 043 BS* 29/6, 30/4 Total E&P Norge AS 237 6407/3 Statoil Petroleum AS 477 B 6506/11 Centrica Resources (Norge) 678 BS* 26/1 Wintershall Norge AS 4 98 734 104 B 30/9 Statoil Petroleum AS AS 591 B 6507/8 Tullow Oil Norge AS 758 6508/1, 6608/10,11 EnQuest Norge AS E 7 620 2 043 CS* 29/6 Total E&P Norge AS 242 16/1 Det norske oljeselskap ASA 678 S* 26/1,2,4, 31/10 Wintershall Norge AS 58°N u 32 00 r 479 6506/12,9 Statoil Petroleum AS l o 9 500 107 6407/7 Statoil Petroleum AS 595 7124/1,2 Edison International Norway 759 6608/10 Edison International Norway p 248 35/11,8 Statoil Petroleum AS i 043 DS* 29/6 Total E&P Norge AS 679 S* 30/1,2,4,5 BG Norge AS MIM p 7 Branch Branch E 670 e 33 484 6608/10 Noreco Norway AS 40 107 B 6407/7 Statoil Petroleum AS e 5 1 248 B 35/7,8 Statoil Petroleum AS 596 6301/3, 6302/1,2,3, ExxonMobil Exploration & 760 6607/11,12 Total E&P Norge AS p 0 57°N COD i 6 669 10 0 044 1/9 ConocoPhillips Skandinavia 681 31/3, 35/12 Tullow Oil Norge AS p 70 300 489 7120/11,12 Eni Norge AS e B 107 C 6407/7 Statoil Petroleum AS 6401/12, 6402/10,11 Production Norway AS $ e 019 UL AS 248 C 35/11 Statoil Petroleum AS 761 6608/7,8 Noreco Norway AS $ Z 730 A 731 11 682 35/9 Bayerngas Norge AS

U 40 044 B 1/9, 2/7 ConocoPhillips Skandinavia 490 7120/4,5,6 Lundin Norway AS 598 6601/6,9, 6602/4,7 Chevron Norge AS

TA l 5 a B 107 D 6407/7 Statoil Petroleum AS B MBA 6 249 25/5 Centrica Resources (Norge) 762 6608/6,9, 6609/4,7 Noreco Norway AS LAN R 68 AS 683 35/10,7 Wintershall Norge AS E 274 C TAM 666 AS 492 7120/1,2 Lundin Norway AS 601 6609/3, 6610/1 Wintershall Norge AS S O 300 BAR 110 7120/5, 7121/5 Statoil Petroleum AS

1 66l ØS l 046 15/8,9 Statoil Petroleum AS 763 6606/2,3 Repsol Exploration Norge AS 2 l 43 7 7j T 684 34/11,8 Statoil Petroleum AS 4 e 06 72 250 6305/8 A/S Norske Shell t 5 9 494 2/9 Det norske oljeselskap ASA 602 6706/10,11,12 Statoil Petroleum AS 14 r e 3 a B p 110 B 7121/6,8,9, 7122/5,6 Statoil Petroleum AS

SO i SEL n 046 B* 15/9 Statoil Petroleum AS 764 7019/2,3 Lundin Norway AS

01 G p 685 34/6, 35/1,4 Total E&P Norge AS VA s 9 YD

R o 255 6406/5,6,9 A/S Norske Shell

p A 494 B 2/6,9 Det norske oljeselskap ASA 603 6706/12, 6707/10 Statoil Petroleum AS r o B

u 110 C 7123/4 Statoil Petroleum AS r 046 BS* 15/9 Statoil Petroleum AS 765 7019/2,3, 7119/12, Statoil Petroleum AS t 619 665 S E 257 6406/1,5 Statoil Petroleum AS 686 36/4 A/S Norske Shell 0 019 C 494 C 2/9 Det norske oljeselskap ASA 604 6706/7,8,9, 6707/7 Suncor Energy Norge AS 19 D 664 113 2/12 DONG E&P Norge AS 7120/10 1 299 S 046 C 15/9 Statoil Petroleum AS 687 35/3, 36/1 VNG Norge AS 61 33 261* 6507/1,2 BP Norge AS 495 7/2,4,5,8 Lundin Norway AS 606 7216/1,2,3 OMV (Norge) AS 766 7119/12,9, Lundin Norway AS 0 8 3 120 34/7,8 Statoil Petroleum AS 18 D 333 146 6 046 D 15/9 Statoil Petroleum AS 0 S B 61 262 6507/2 BP Norge AS 688 6203/9, 6204/7 E.ON E&P Norge AS 7120/10,7 FLYN 18 C 018 B TO 495 B 7/1 Lundin Norway AS 607 7218/8,9, 7219/7 GDF SUEZ E&P Norge AS DRE 662 R 120 B 34/7,8 Statoil Petroleum AS 767 7120/3, 7121/1,2,4 Lundin Norway AS 660 275 00 72 048 15/5 Statoil Petroleum AS 689 6306/3 DONG E&P Norge AS V ALB 6 724 8 5 263 6507/10,11 Statoil Petroleum AS 498 7/11,12,7,8 Lotos Exploration and 608 7219/8 Statoil Petroleum AS EST U l TOM EK SKJ 4 121 6407/5 Statoil Petroleum AS 768 7123/5,6,7,8,9, Wintershall Norge AS MEL OF ELL 2 567 048 B 15/5 Statoil Petroleum AS Production Norge AS 690 6407/4 Bayerngas Norge AS ITEN ISK 00 3 263 B 6407/2 Statoil Petroleum AS 609 7220/11,12,6,9, Lundin Norway AS GAM 044 018 6 C 122 6507/2 Eni Norge AS 7124/4,7, 7127/8 MA 726 048 D 15/5 Statoil Petroleum AS 498 B 7/8 Lotos Exploration and 7221/4 692 6509/3, 6510/1,2 Repsol Exploration Norge AS 5 263 C 6507/11 Statoil Petroleum AS 769 7124/4,5,6,8,9 OMV (Norge) AS ing 0 EKOF 6 727 41 Production Norge AS edn 44 B ED ISK 63 122 B 6507/3 Eni Norge AS 609 B 7120/1,2 Lundin Norway AS ljel DA 494 048 E 15/5 Statoil Petroleum AS O B 265 16/2 Statoil Petroleum AS 501 16/2,3,5,6 Lundin Norway AS 693 6608/4,7 OMV (Norge) AS 770 7123/6, 7124/4,5 Edison International Norway ipe 14 494 orp 5 E C 122 C 6607/12 Eni Norge AS N E LDF 494 050 B* 34/10 Statoil Petroleum AS 610 7222/2,3 GDF SUEZ E&P Norge AS Branch 57°N MBL ISK TRY 269 35/1 Statoil Petroleum AS 501 B 16/3,6 Lundin Norway AS 694 6607/4,5,6 RWE Dea Norge AS F A 0 539 M 725 r 06 122 D 6607/11 Eni Norge AS a 289 050 C* 30/1 Statoil Petroleum AS 611 7223/3,6, Wintershall Norge AS n B 617 147 695 7018/3,6, 7019/1 Lundin Norway AS p V 270 35/3 VNG Norge AS 502 16/5 Statoil Petroleum AS i AL 7224/1,2,3,4,5 p 03 HAL 124 6507/8 Statoil Petroleum AS Totalt: 544 e 6 3 B L 16 1 050 D* 34/10 Statoil Petroleum AS 696 7020/1,2,3, 7021/1, Statoil Petroleum AS 0 13 270 B 35/2,3 VNG Norge AS 503 17/7,8 Lotos Exploration and 612 7318/8,9, 7319/7 GDF SUEZ E&P Norge AS 56°N 33 HOD 127 6607/12 Total E&P Norge AS 7120/11,12, 7121/10 *Stratigrafisk avgrensa 050 DS* 34/10 Statoil Petroleum AS Production Norge AS 613 7322/10,11 DONG E&P Norge AS 272 30/11 Statoil Petroleum AS 697 7122/10 Eni Norge AS 050 ES* 34/10 Statoil Petroleum AS 128 6608/10,11 Statoil Petroleum AS 503 B 17/5,6,9 Lotos Exploration and N 274 CS* 1/2 DONG E&P Norge AS 614 7324/9, 7325/7 Statoil Petroleum AS ment geologist Fredrik Hagemann was o Production Norge AS 698 6304/6,9, 6305/1,4,7 A/S Norske Shell r 128 B 6508/1 Statoil Petroleum AS p 050 FS* 34/10 Statoil Petroleum AS i 503 C 17/5 Lotos Exploration and p 274* 1/3 DONG E&P Norge AS 615 7324/1,2,3, 7325/1 Statoil Petroleum AS e 132 6407/10 Statoil Petroleum AS 699 6304/9, A/S Norske Shell G 050 GS* 30/1 Statoil Petroleum AS Production Norge AS a 275 2/4 ConocoPhillips Skandinavia 615 B 7425/10,11 Statoil Petroleum AS 6305/10,11,7 s of the NCS 504 BS* 25/7 Det norske oljeselskap ASA s 134 6506/11 Statoil Petroleum AS l e Maps 050 HS* 34/10 Statoil Petroleum AS AS 700 6406/11,12 Lundin Norway AS d 616 2/10,11,7 Edison International Norway n 504 CS* 25/7 Det norske oljeselskap ASA i 134 B 6506/11 Statoil Petroleum AS 277 33/12 Statoil Petroleum AS n 050* 34/10 Statoil Petroleum AS Branch 701 6406/11,12,9 Noreco Norway AS g 504* 25/7 Det norske oljeselskap ASA 617 2/9 Ithaca Petroleum Norge AS 051 30/2 Statoil Petroleum AS 134 C 6506/11 Statoil Petroleum AS 289 3/7 DONG E&P Norge AS 702 6604/8,9 OMV (Norge) AS 143 BS* 1/2 Talisman Energy Norge AS 292 15/12, 6/3 BG Norge AS 506 BS* 26/2 Rocksource Exploration 618 1/2,3,5,6,9 Total E&P Norge AS 052 30/3 Statoil Petroleum AS Norway AS 703 6605/1 OMV (Norge) AS 619 1/3,6, 2/1 Total E&P Norge AS Les meir om kartet eller 052 B 30/3 Statoil Petroleum AS 143* 1/2 ConocoPhillips Skandinavia 292 B 15/12 BG Norge AS 506 CS* 26/5,8 Rocksource Exploration 704 6704/12, 6705/10 E.ON E&P Norge AS AS 293 34/12, 35/10,7 Eni Norge AS Norway AS 620 9/6 Faroe Petroleum Norge AS bestill din eigen kopi på 053 30/6 Statoil Petroleum AS 145 2/7 ConocoPhillips Skandinavia 705 6705/10,7,8,9 Repsol Exploration Norge AS 0 25 50 75 100 506 DS* 26/5,8 Rocksource Exploration www.sokkelkartet.no AS 293 B 35/10 Statoil Petroleum AS 622 15/12, 16/10,11 Premier Oil Norge AS Km 053 B 30/6 Wintershall Norge AS Norway AS 706 7017/6,7,8,9 A/S Norske Shell 56°N quick to shift from seeking water to oil 4°E 6°E 8°E 10°E 12°E 14°E 16°E 18°E 20°E 22°E 24°E 26°E 28°E in 1965 and 2014. prospecting when the chance arose in 1966. He later became the NPD’s first director general. We can moreover thank God that the politicians didn’t interfere with us. We were able to put a lot in place during the early years | Bjørn Rasen (text and photo) before Ekofisk became a reality. Fredrik Hagemann headed the NPD from its creation in 1972 until 1996. His portrait hangs in the directorate.

The year after the first licences discounted.” with us. We were able to put a NGU’s conclusion was wrong. “Combined with its long-term latter city had prepared better plans were awarded on the NCS, Hagemann notes that the lot in place during the early years Hagemann began visiting the charter for Ocean Viking, that for hosting the NPD and state oil Hagemann secured a temporary definition of what constituted before Ekofisk became a reality.” companies to study their seismic persuaded Phillips to drill the final company Statoil than rivals Bergen job with the Ministry of Industry’s Norway’s coastline was crucial. The mention of this field charts, which was not well received well – and discover Ekofisk in 1969. and Trondheim. mining office. The boundary negotiations with brings up the story of the way in the ministry. The feeling was that Without that, we’d have had a big “I sat on a committee which Here he joined lawyer Nils B the UK in the North Sea were like its discoverer, Phillips Petroleum, the companies should come to it, delay on the NCS.” assessed these locations,” he Gulnes (see separate article) and going back a millennium. tried to secure a licence for not the other way round. Optimism continued to prevail recalls. “We asked Trondheim what engineer Olav K Christiansen. “We hadn’t pursued territorial the whole NCS in exchange In addition, Jens Evensen – the in the mining office. Hagemann it could offer in the way of homes “Some seismic surveys had been claims since the Viking Age,” for investing in an exploration foreign ministry official who played consoled himself with the thought for employees – and the answer done, but we knew little at that Hagemann points out. “The base programme. a key role in organising Norway’s that the wells so far were pinpricks was that they could join a housing time,” he recalls. line was set at the outermost Submitted in 1962, the offshore activities – had issued strict – not enough to write off a whole cooperative. Hagemann had previously islets, and our negotiators knew company’s request remained instructions to avoid corruption. continental shelf. “And Bergen envisaged that the worked on water exploration with every rock at low tide. unanswered until 1986 – when “We explained that this was He also points to the recent NPD could obtain offices in a fire- the Norwegian Geological Survey “That meant we got our the ministry admitted that it had only for practical reasons,” says Johan Sverdrup discovery, where damaged factory which had been (NGU), and his colleagues thought boundary pushed further west. taken some time to reply, but that Hagemann. “And we wanted to earlier wells had been drilled only a used for manufacturing safes.” he was mad to leave. And that’s obviously interesting the application was regretfully learn. Nobody opposed or checked few hundred metres away without At the age of 86, Hagemann “I didn’t actually get a when we see the big North Sea rejected. up on us. The companies had been locating the reservoir. has retained his interest in the oil permanent job to begin with,” discoveries close to or straddling Hagemann says that this bluntly told not to try anything. We industry and still gives presentations, he observes. “I was on leave of the boundary.” response was sent after 24 years got no more than cup of coffee.” mostly based on a single overhead – absence from the NGU for the because Phillips used every After 33 wells without a serious Head the map of the NCS. first year.” festive occasion to remind the commercial discovery, pessimism He feels that “a lot of strange He is also quick to deny any Potential government that no answer had began to spread and Phillips tried to Hagemann applied to head the new things” are being said about the involvement with the NGU’s been received. avoid the final drilling operation in NPD in 1972, and held that job until industry today, but wants to avoid notorious comment in a letter to Unlike the NGU, the trio in the “The ministry was formally its lowest-priority licence. 1990. He served as acting director taking part in the debate – almost. the Ministry of Foreign Affairs in mining office believed in the responsible for issuing the “However, the small print in the general for another six years while “I’ve always maintained that we February 19578. potential, he says. “Everyone else rejection, since the letter from terms said that the operator would successor Gunnar Berge continued can’t write off the Barents Sea,” he This put matters bluntly: “The was pessimistic, including the Phillips had been addressed to it.” have to pay the government what his political career. emphasises. “We’ve only made some chances of finding coal, oil or politicians and industry. Once the companies had a well would have cost if it deviated The move from Oslo to pinpricks there. Interest vanished for sulphur on the continental shelf “We can moreover thank God launched their seismic surveys, from the work programme,” Stavanger was welcome, not least a while, but it’s back again now.” off the Norwegian coast can be that the politicians didn’t interfere it quickly became clear that the Hagemann recalls. to his family. He found that the

14 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 15 First to find Dry debut

Rolf “Rocky” Øverland was sitting in the control room when Ocean It took Esso less than a year from receiving a production licence in Traveler made the initial oil strike on the NCS. But it would take 32 Norway’s first offshore licensing round during 1965 to spudding a years to bring this discovery on stream as the Balder field. well with Ocean Traveler in North Sea block 8/3. But this first probe on the NCS found nothing.

| Eldbjørg Vaage Melberg | Bjørn Rasen

Above: Ocean NPD Paper No 1 – Traveler found Lithology. Well no Norwegian oil 2 283 8/3-1 is a 24-page metres beneath the publication with fold- seabed in 1967. out presentations (Photo: Nordal of lithography in the Torstensen/ That was more than three years nies devoted all their energies to years later and published NPD well. (Photo: Arne The resources in well 25/11-1 was to keep the vessel stable. they knew could work hard,” Norwegian before Ekofisk became the dis- exploration,” says senior engineer Paper No 1 to describe its lithol- Bjørøen) Petroleum Museum) were not initially commercial. Then as now, it involved a 12-hour recalls Øverland, who estimates covery which really sparked the Alf Stensøy at the NPD. ogy – sequence of geological Nor could they compare with shift followed by 12 hours off – Stavanger had about 250 peo- Norwegian oil adventure, after 32 “And when Phillips found layers. the huge Ekofisk find two years and he spent one week on the rig ple associated with the oil sec- Right: On charter wells had been drilled since 8/3-1. Ekofisk, that took all the atten- Stensøy notes that the gov- to Esso, Ocean later. Nevertheless, their discovery with the next free. tor in 1966. Roughly 100 were Esso Exploration and tion and capacity.” Cod was ernment wanted an interpretation Traveler found the marked an important milestone in Those were the days when Americans. first oil on the NCS Production Norway A/S did find not brought on stream until 26 which could be published. This the history of the NCS. North Sea personnel went to “There were otherwise per- in 1967. It was not oil in 1967 with its second well, December 1977. and later papers from the NPD commercial at the Oil was encountered by the work wearing shirt, tie, overcoat sonnel in the operator companies, but the discovery was not con- Ocean Traveler spudded the were often used for educational time, but could Odeco rig, on charter to Esso, in and hat. Øverland was 22 years the rig contractors and other sup- be developed 32 sidered commercial at the time. well 163 kilometres south-west purposes among Europe’s conti- midsummer 1967 in 126 metres old at the time, and a qualified car pliers, the supply base, the heli- years later as Thirty-two years later, it was of Stavanger cathedral on 19 July nental shelf nations. the Balder field. of water and at a depth of 2 283 mechanic. copter service – and at Rogaland brought on stream as the Balder 1966. This drilling debut was over “We can probably say that the (Photo: Norwegian metres beneath the seabed in He had previously worked Radio, which kept us in touch Petroleum Museum) field. 84 days later, on 10 October. earlier NPD papers were among production licence 001. for Brødrene Kverneland near with land.” Cod ranked as the first discov- Five cores were taken from the first elements in what later It was a normal day at work Stavanger. His colleagues were Øverland’s job on Ocean ery to be declared commercial, the well at depths from 2 075 to became our fact pages,” Stensøy for Øverland, who had joined Americans who had accompanied Traveler marked the start of a long when oil was found by Ocean 3 015 metres. Measuring a total of observes. Norway’s nascent offshore indus- the rig from the USA, and other career in the oil business, which Viking on 10 June 1968 in the 25 metres in length, they are still All well descriptions are now try late the previous autumn on young Norwegians with back- did not come to an end until he ninth well and the second drilled available in the NPD’s rock store. available as well data summary Ocean Traveler – the first rig to grounds in industry, fishing or retired last Christmas after 48 by Phillips Petroleum. The first well was naturally an sheets on this part of the NPD drill on the NCS. farming. years in the industry. “But it wasn’t developed event, and the NPD’s specialists website. His job in the control room “The Americans wanted folk until later because the compa- assembled available data several

16 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 17 “We’ll undoubtedly reach agreement on Statoil in the end ...” “Blow me if it isn’t time for lunch” – a comment on Statoil was the subject of heated arguments in the Conservative Norway’s new values. Norwegians have allegedly become government headed by Kåre Willoch (centre) during the early more concerned with lunch and holidays than work – clearly 1980s. Stavanger’s Arne Rettedal (right) strongly opposed a privati- sation of the state oil company, which would quickly have been sold abroad.

Drawing lessons I joined perhaps Norway’s wealthi- Hagland introduced me, and crete platforms being built. est daily paper, in the heart of explained afterwards what a In particular, I recall standing in Norway’s “oil capital”, when I start- key role Rettedal had played in the bows while Johnsen pointed at ed work at Stavanger Aftenblad in the city’s development as an oil the huge columns and said: “Look, 1978. That was in the early days of centre and for the country as a what a triumph for Norwegian the Norwegian offshore adventure. whole. He was an example of what technology.” One of my first assignments we can call a “west Norwegian I have seldom heard anything was to accompany Jan Hagland, Conservative” – not very ideologi- so visionary and optimistic. My the paper’s well-informed oil cal, but all the more practical and thought was that this man wanted reporter, to the ONS oil show in the dynamic. to achieve something for himself – city. Seeing the dimensions, exhib- Results are what count, rather for Norway and for society. its, technology and international than principles and craftiness. Eventually, I had the pleasure setting was an overwhelming And results there were. Stavanger of drawing portraits of such nota- experience. experienced huge growth, and was bles as Fredrik Hagemann, direc- “I was on the moon – honest!” One of the prestige projects pursued by Jens Stoltenberg as Labour prime minister I appreciated that this was quickly transformed from a slightly tor general of the NPD, geologist (2005-13) was the “moon landing” at Mongstad – a major scheme for carbon capture at this refinery north of Bergen. something big, really big. Not only run-down canning town into an Farouk Al-Kasim, and petroleum Claims were long heard that the carbon dioxide problem had been overcome. was the exhibition site itself large, international oil city. ministers Bjartmar Gjerde and Kåre but something even greater could In the years which followed, Kristiansen (who was said to get on be sensed – like an omen of a new I met a number of very interest- particularly well with the Arabs). Roar Hagen is one of Norway’s most renowned political cartoonists. Born in Ørsta near Ålesund in 1954, era. ing players. Hagland and I were Among others were Konrad he trained as a graphic designer, worked as a newspaper cartoonist for Stavanger Aftenblad from 1978-86 One of the first people we met invited, for example, on a boat trip B Knutsen, governor of Rogaland and has since been with VG. He has also been a freelance contributor to Sunnmørsposten. His cartoons have appeared in such publications as Time Magazine, Newsweek, New York Times, Le Monde and was no less a personage than Arne to Ryfylke north of Stavanger when county, unionist Lars Anders Der Speigel. They have also been purchased by the Norwegian Storting (parliament), Norway's National Rettedal, Stavanger’s legendary Statoil president Arve Johnsen Myhre, and engineer and Gallery, Stavanger Art Museum, Statoil and the NPD, as well as by a number of international museums and mayor, at the head of his delega- wanted to show Mexico’s petro- Norwegian oil pioneer Olav K galleries. Hagen has also won national and international awards for his work – Newspaper Cartoon of the Year in Norway for 1979 and International Caricatura Politica Italia in 2004. He is affiliated with Cartoon tion. leum minister one of the giant con- Christiansen. That was a fantastic Arts International/New York Times Syndicate.

18 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 19 Celebrating wise choices | Bjørn Rasen and Astri Sivertsen (photo)

Commemorating the 50th anniversary of the first licensing round on the NCS in 1965 is natural for the Norwegian Petroleum Museum, says director Finn Krogh. “That year will remain a beacon in Norway’s oil history.” An exhibition to mark this historic event opens at the museum on 9 June, and Krogh has issued invitations to key industry figures who played crucial roles in the early phase. That was when the legal and political founda- tions were laid for Norway’s oil future. Several of the personalities are due to speak at the opening. “A lot of the things these people decided at the time, on the basis of limited knowledge, have proved to be wise choices,” says Krogh. Petroleum and energy minister Tord Lien will be conducting the official opening. “When we see the development Norway has been through, and also know what impact our oil wealth has had on this, it’s important to show how it all began,” explains Krogh. He is very pleased to have newspaper car- toonist Roar Hagen on board. “His cartoons have adorned VG – and Stavanger Aftenblad before that – over several decades. No other Norwegian cartoonist has worked more closely with the oil industry.” Norway’s relationship with Saudi Arabia has been coloured by the two countries’ shared interests. While staying outside Opec, the Norwegians have fre- “What if this doesn’t last ...?” The offshore industry has undo- quently hoped that the oil sheikhs would limit production and thereby keep prices high. Hardly surprising, then, that all Norwegian petroleum ministers must ubtedly had an impact on the Norwegian national character. Geir Mossige Johannessen, head of exhibi- make an obligatory pilgrimage to the Arabian peninsula. tions at the museum, reports that Hagen’s many cartoons will have a central place in the show. “We’ve also modernised and updated our time, with room for groundbreakers. board and the dimensions. believe they can deal with blowouts natural gas, which is seen as little proud over what the coun- Petrorama exhibit in honour of the 50th anniver- Those who were sufficiently For most Norwegians, oil and and spills. environment-friendly in most try has accomplished. sary,” he says. “This is our chronological presenta- clearsighted and visionary to see the gas are a kind of abstraction far out Attention has focused instead countries. A long thread runs from tion of key events in Norwegian oil history from potential of the NCS were naturally to sea which provide a huge cash on the consequences of burning Such ideas naturally have the first prehistoric people who the 1960s to the present day.” also highly interesting people who flow to be shared out and managed. fossil fuels, which almost certainly many amusing outcomes in settled Norway’s coast to the The petroleum museum moved into its newly helped to shape Norway’s future. Fortunately, a few farsighted contributes to global warming. That Norwegian politics. The country present advanced Norwegian- built home in downtown Stavanger in 1999. Viewed in retrospect, I would politicians have ensured that part of has led to a very vigorous debate in lives off petroleum, but has a built special ships, the offshore say that the features they had in the cash is diverted into the petro- Norway, which is hardly surprising difficult relationship with it – installations, the drilling engi- common – apart from enthusiasm – leum fund – a kind of reflex from given the dominance of its oil sec- and with gas in particular. So it neers and the specialists at sea were their grasp of the political deci- Norway’s old Protestant national tor. end up with a form of national and on land. sions which made this possible, and character. Much of what gets said is sensi- split personality. In my view, this heritage of their ability in their different ways to Even if this has become some- ble, and the industry has been doing I am pleased to have been maritime know-how has never see themselves in a wider perspec- what less dominant, it calls for pru- a lot to become more environmen- given the opportunity to reflect been broken. The country has tive. At least at that time. dence in all things, and for putting tally aware. But some aspects are my nation’s oil history through also had some farsighted politi- The Norwegian oil sector even- resources aside to cope with hard directly laughable, such as the politi- an anniversary exhibition at the cians who took the right steps tually moved into a more mature times. cal notion of running offshore instal- Norwegian Petroleum Museum. when its future was shaped. phase. Safety and technology were Nevertheless, the oil money lations with power from shore. Technology, economics and The Norwegian oil age may much improved, routines were tight- flows into every nook and cranny In order to delay burning the environment have been have peaked, but it is not over, ened up, and Norway also became a of society, and foreigners regard Norwegian gas until it reaches and remain the three main ele- and the experience acquired substantial gas supplier. The oil age Norway today with a mixture of other countries and thereby reduce ments I use constantly, first in should be applicable to new became normality. envy, amazement, respect and a lit- national carbon emissions, the coun- Stavanger Aftenblad and later in opportunities in the future. A visit to an oil platform pro- tle laughter. try is building monster pylons in its Oslo daily VG. It is a privilege to be vides a lifelong memory for those us The environmental aspect has finest landscapes. Being able to meet some of allowed to contribute to this lucky enough to have had this expe- come much more to the fore over Carbon dioxide, of course, rec- the people behind this miracle story about Norway. Cartoons Director Finn Krogh (left) and exhibitions head Geir rience – the helicopter flight out, the time – although not so much with ognises no frontiers. And burning of Norwegian history is fantas- are my way of telling the tale. Mossige Johannessen have modernised and updated the safety precautions, the people on regard to oil itself, since Norwegians represents the major application for tic, and I cannot deny being a petroleum museum’s chronological time line.

20 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 21 Johan Sverdrup, Norway’s new giant North Sea oil field, is expected to pro- duce for about seven decades. The goal is a recovery factor of no less than 70 per Work for generations cent of reserves in place. (Illustration: Statoil) The Johan Sverdrup field played hide-and-seek for 40 years with some of the world’s leading oil prospectors before its discovery in 2010. Prospects for the NCS would have been significantly gloomier without it.

| Bjørn Vidar Lerøen

Norway’s new North Sea giant is depends on oil and gas. lengthy discussion on percentage duction, and work on that is now represents a welcome addition to ported north-eastwards for 274 now under development, with Oil explorers first reached this shares. in full swing. Norwegian oil output, which has kilometres through a 36-inch dimensions in the same mega- part of the Norwegian North Sea Statoil and its partners opted “This will be a massive project, been falling for the past 15 years. pipeline to the Mongstad complex class as the Ekofisk, Statfjord and in the early 1970s, and drilled fairly to submit the plan for develop- but we have the reservoir on our More recently, too, oil prices north of Bergen. Troll fields. The Norwegian oil sec- close to Johan Sverdrup. But it still ment and operation (PDO) to side,” says Nylund. “I’d character- have slumped, production costs Associated gas, which tor has not been able to use such took four decades to locate it. the Ministry of Petroleum and ise it as a friendly formation, with have exploded and opposition to accounts for about five per cent of big words and numbers for a long The field extends over three Energy on Friday 13 February this fantastic production properties.” the industry’s activities has risen the field’s reserves, will be piped time. licences, and was originally given year. Petroleum minister Tord He says Johan Sverdrup will among Norwegians. for 156 kilometres through a “Without Sverdrup, the NCS two names – Avaldnes and Aldous Lien called it “a historic day for be much easier to deal with than Almost 50 years after the NCS 19-inch line to the Kårstø process- would be in a poor way,” confirms Major South. But Ola Borten Moe, Norway.” Gullfaks, for example. And he is was opened to oil exploration ing plant north of Stavanger. Arne Sigve Nylund, the executive the Centre Party politician who Former premier Sverdrup’s well placed to make that judge- in 1965, Nylund observed in a Johan Sverdrup will thereby vice president at Statoil responsi- was petroleum minister at the descendants in the Liberal party ment, having served as a platform speech that the workers who will also help to strengthen the opera- ble for operations off Norway. time, wanted something more have stipulated two significant manager on the latter. shut down Johan Sverdrup have tional basis for Norway’s most This field is indeed the big Norwegian. requirements for whichever gov- Nylund has also been in yet to be born. important oil and gas facilities bright spot in an otherwise diffi- He amended the practice for ernment presents the develop- charge of Statfjord, and cites it to When it comes on stream in on land, at Mongstad and Kårstø cult time for the petroleum sector. naming fields on the NCS. Johan ment plan. illustrates the dimensions faced 2019, at a cost of NOK 117 billion respectively. Oil circles worldwide were aston- Sverdrup was a noted 19th-cen- These are that installations on on the NCS – recoverable oil for stage one, the field is likely to The employment effect of ished at the news of the massive tury Liberal politician and prime the Utsira High must be run with resources in this field have been remain in production for 70 years. the field will be substantial, with strike on the Utsira High. minister, and the father of parlia- power from shore, and that the upgraded by 1.7 billion barrels A phased development is development alone demanding The small Lundin Norway com- mentary government in Norway. oil industry must not be allowed since it came on stream in 1979. essential given that the reservoir 50 000 work-years. An average pany drilled the 16/2-6 discovery “All power will be concen- beyond the marginal ice zone in That is close to the lower covers roughly 200 square kilo- operating year will require 2 700 well in the autumn of 2010, while trated in this chamber,” was his the far north. estimate for recovery from Johan metres and will call for several work-years, with operator Statoil Statoil followed up with another most famous declaration. And all Where Johan Sverdrup is con- Sverdrup, which is expected to installations linked by a kilometre estimating that this figure could well in the neighbouring licence oil in the field named after him cerned, Liberal pressure has been yield 1.8-2.9 billion barrels of oil of bridges. reach 3 400 at plateau. the year after. has come to be concentrated in a successful. Phase one of the field equivalent – 95 per cent of it oil. The first phase of Johan When the first production This established that the unitised development. development will be powered by But Nylund emphasises that a Sverdrup alone is expected to well is opened in late 2009, the find was even bigger than first But negotiating the division electricity from land. number of other new discoveries yield a daily output exceeding field will start building up until thought, ranking as the largest of this wealth in order to achieve The history of this discovery are required to offset the decline 300 000 barrels of oil, and this it accounts for 25 per cent of discovery that year in a world such a coordinated approach will extend far into the future. But in production from Norway’s old level of production will later be Norway’s entire oil stream – as which still needs more energy and proved less than easy, with a it must first be brought into pro- offshore fields. more than doubled. matters stand today. Johan Sverdrup nevertheless Oil output is due to be trans-

22 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 23 Pundit Hans Henrik Ramm rejects all the dramatic statements about Norway’s need to shift from oil to “other things”. He points out that the nation has mana- ged a 50-year upturn very well, and can also deal with a lengthy downturn in a good way.

Ramm comes sauntering in from the side, as so many times before, puffing thoughtfully on a cigar. Yet another oil conference is about Watcher in to start. The Norwegian Oil and Gas Association is holding its annual meeting to confirm the industry’s significance and discuss possible dark clouds which might have appeared over the wings the past year. Drawn into the world of oil through poli- The willingness to act is the key, not resour- tics, Ramm studied science “for a time” but was also interested in journalism and society. ces, says Hans Henrik Ramm. He was 15 “Immediate gratification won out, and when Norway held its first offshore licensing I got a job with [right-wing newspaper] Morgenbladet,” he explains. “I was only 19 round, and has since followed events as a when I became Storting [parliamentary] cor- political player or with a sharp eye through respondent. “That allowed me to work on pretty much his Behind the news service. any subject I liked – and see my story make the front page. It was a fantastically exciting time.” After military service, as a reporter on the | Bjørn Rasen and Sverre Christian Jarild (photos) armed forces newspaper, he “changed sides” when the Conservative group in the Storting called him in as one of its secretaries. “There were two of us at the time, doing a job which employs 30-50 people in the main parties today,” Ramm observes. He was made responsible for the “hard” issues – finance and industry. “And thereby for oil, which had become very important when I started there in 1973.” That was one year after Statoil and the NPD had been established, and two since the Ekofisk field began production in the Norwegian North Sea. Deciding what kind of state oil company the young petroleum nation needed had

24 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 25 I certainly worry the industry’s going to repeat the error and scare young people away. And the government is doing too little, standing by while field developments are postponed. These will accumulate to create a new bulge in activity.

been a lengthy process, with view, the organisation of Statoil The latter allowed Statoil’s also acquired by the new entity. The Storting representatives getting was a compound of politics and holding to be increased if a dis- sliding scale was abolished in 1993. involved late but heavily. business. covery was made. And the other Ramm maintains that the civil White Paper no 25 to the That had occurred because licensees had to carry (pay) the servants envisaged a solution in the Storting warned in 1974 that oil Labour took over in 1971 from company’s share of exploration late 1960s which by and large resem- revenues could be substantial and the centre-right coalition led by costs. bled today’s Petoro, the state-owned that spending them would cause Per Borten. “Finn Lied and Arve According to Ramm, this had company created in 2001 to manage changes. Johnsen made big changes to the the effect that Hydro and Saga the SDFI. Ramm recalls the recom- proposals from the civil servants were required to pay these costs They did not want Statoil to have mendation from the Ministry of for structuring the planned state on behalf of competitor Statoil too many roles, but more than 30 Finance that, were these funds to company,” says Ramm. while also having their stake years passed from the first discus- have any purpose, they must be Lied was Labour’s industry reduced in the event of a find. sions until Petoro was set up as a used to purchase goods and ser- minister, while Johnsen served “In that way, Statoil acquired management company outside the vices from abroad. as the deputy minister who later what amounted in reality to a ministry. Norway’s own production of became Statoil’s first chief execu- right to tax the other companies “It’s easy to be wise after the goods would accordingly decline, tive. while it also developed as an event,” says Ramm. “I think never- and the country faced a transition Ramm points out that Norway operational organisation.” theless that accepting the civil ser- from manufacturing to the provi- already had Norsk Hydro, a major Ramm says that the mixing vice proposal and creating a ‘Petoro’ sion of services. industrial group at the time, the of business and politics in Statoil would have given us a stronger “A number of people wanted forerunners of Saga Petroleum, initially aroused little discussion. Hydro and Saga. to ensure that change wasn’t too and a multitude of other compa- That debate was to blossom later. “We’d also have had a differ- rapid,” Ramm says. “So we got a nies keen to be involved in oil. The main concern of the non- ent type of ‘Statoil’ with a bigger debate about the pace of oil rev- “A general view existed that socialist parties to begin with was element of private ownership from enues, and thereby of the indus- we didn’t possess enough capital the “stop at the beach” principle – the start, and thereby gained three try as a whole. Few foresaw at the and that no room existed for so Statoil should confine its activities strong oil companies competing on time that we’d develop a big and many enterprises. Great interest to the NCS. equal terms.” important supplies sector.” existed in the Storting for creating Possessing three companies Maritime industries repre- a new national company. was incredibly important for build- sented economic cornerstones “The representatives were Involvement ing up the supplies industry, Ramm in Norway at the time. Oil was then thinking only of acquiring a says. “And the golden age was the something remote, which few strong operational organisation, Questions were also raised about mid-1990s, when we saw the devel- Norwegians talked about. Public while the civil servants wanted how heavily the company should opment of subsea technology, for discussion did not really take off one which could handle the become involved in petrochemi- example.” until Ekofisk was found in late state’s negotiated rights.” cals, supply-base operation and Each of the Norwegian compa- 1969. Both the Conservatives and seismic surveying. nies had a key industry partner at “Everyone then naturally Labour had studied how this The conclusion was that this time – Statoil and Kongsberg, became interested,” Ramm should be done, and both envis- Statoil would be a wholly com- Hydro plus Kværner and Saga with recalls. “Norway was far from aged a new company with a mercial enterprise and a fully ABB, he adds. being a wealthy country, but peo- combination of public and private integrated oil company with inter- “A trio of inspired teams compet- ple were optimistic.” ownership. ests in petrochemicals, refining ed with each other to find solutions. Once in government, how- and marketing, as well as having That’s been lost – first through the ever, Labour decided to merge opportunities to operate abroad. tragedy that Saga was consumed Debate these concepts and base the new In 1985, the state’s direct by Hydro and Statoil, and then the state oil company on the rights financial interest (SDFI) was estab- tragedy of Hydro being taken over Within five years, a political secured by the state, with full lished as a separate legal unit by Statoil. debate was in full swing about public ownership. State power under Statoil management. The “The last of these mergers was how much production Norway and rights were thereby used to company’s licence holdings were one of the most unfortunate devel- could tolerate if the level of social build up Statoil. split into two components, one opments we’ve seen, because it change fuelled by oil revenues From the fourth licensing which it retained while the other eliminated diversity and created a was to stay at an acceptable level. round in 1978, the company was was transferred to the SDFI. company with a very dominant role.” “It’s easy to be wise after the event,” says Hans Henrik Ramm. “I think nevertheless that Another controversy in the awarded a 50 per cent stake in all The associated rights to have What he means by this is that accepting the civil service proposal and creating a ‘Petoro’ would have given us a stronger Hydro and Saga. “We’d also have had a different type of ‘Statoil’ with a bigger element of 1970s concerned the role of the new licences and also benefited exploration costs carried and to the position of the NCS as one of the private ownership from the start, and thereby gained three strong oil companies competing on new state oil company. In Ramm’s from a “sliding scale” system exercise the sliding scale were world’s leading offshore technology equal terms.”

26 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 27 ... and we can deal with the lengthy downturn in a good way – without making it sound so terribly dramatic.

diate future and the longer term,” the sector does not lose too much contested by other experts, he Another and much discussed con- says Ramm, who has heard most expertise, so that it has to struggle believes the government should tribution to the debate is an article in of the talk before. once the cyclical recovery begins. reverse the change as soon as it can Nature on how oil and gas production He agrees that the industry The industry has made that mistake – and, indeed, introduce measures to breaks down by region and country. and the nation have a problem in before. improve recovery. The authors maintain that, pro- the short term: “During this cycli- “I certainly worry it’s going to “That’s been promised to the viding all output is cost-effective, no cal downturn, petroleum invest- repeat the error and scare young Storting, and must be done as quickly room would exist for petroleum sup- ment is set to decline by 15-20, people away. And the government as possible, both to support activity plies from the Arctic. perhaps 25, per cent – with a risk is doing too little, standing by while and to secure time-critical resources Ramm dismisses this claim of an even steeper drop in 2017-18. field developments are postponed. in mature fields.” because it rests on average costs “That’ll depend on oil price These will accumulate to create a new He points out that many project for all parts of the high north, while developments and strategic bulge in activity.” opportunities on the NCS demand Norway can operate much more choices by the companies. How He notes that one peak included such a big commitment by the com- cheaply in its part of the region. will the big players prioritise 10 projects simultaneously, created panies in both organisational and The interesting aspect of the between investment, dividends not least by delaying several develop- technological terms that they are not article is its demonstration that a cost- and borrowing, for example? And ments from 2008 to 2011. They were taken. effective adaptation to the 2°C target when will they recover their ability then launched when oil prices were That applies particularly to small will give less space for coal and more and willingness to invest for the high. fields and improved recovery in a late for petroleum. future?” The same happened in 2004, he phase of a field’s producing life – tail It actually shows that success in He is convinced that oil prices adds. This is the third cycle of its kind production – and to exploration in cutting the use of coal would allow will recover – the question is when since 2000, with the industry acting frontier areas. oil consumption to remain at roughly and by how much. “Then it’ll be like somebody with bipolar disorder “In other words, everything that’s the present level until 2050, while gas business as usual, and we’re back as oil prices fluctuate. tough. The British have grasped this usage could rise by 50 per cent. on the long-term trajectory.” Ramm believes the level of activ- long ago, and introduced tax deduc- Norway cannot maintain 95 per Unlike the impression created ity needs to be supported during tions for various demanding fields. cent of today’s output in 2030, even by some of Norway’s leading poli- downturns. If the crisis becomes too We must do the same here if we want with full activity, Ramm says, and ticians, Ramm believes the current deep and affects the national econ- to get the resources out.” therefore believes that business as downturn being experienced by omy, development projects will be usual is fully compatible with the cli- the industry is unrepresentative of postponed again. mate goals. “Attacking the the long-term trend. That was what happened a few Emissions “Oil and gas must be provided supply side would undermine the “There’s no need to start con- years ago, leading to another bulge in regardless,” he points out. “In that whole delivery of verting from oil to other areas activity which the industry is currently The other side of the coin is what the case, it’s better that it gets produced energy,” maintains yet, apart from limited changes struggling to escape from. world can tolerate in terms of emis- in Norway with our operating param- Hans Henrik Ramm. “That’s not because costs must be reduced. sions. Norway’s public debate on this eters.” particularly effective, Finding other legs to stand on issue has become far more polarised He feels that the policy of taking and the world could must come in addition. Tax for or against oil. symbolic action – which is supported become dangerous if energy supplies “In historical terms, we’ve Ramm is more than happy to by a minority in Norwegian politics – fail. This also has a been through 50 years of growing Ramm’s principal complaint is the address the climate issue. “The has too dominant a place. moral aspect.” activity. We now face 50 years of tightening in the tax regime intro- key issue is how much of the fossil In his view, the climate debate decline. And we’ve known that all duced in 2013, which reduced oil resources are usable. If we get a big should pay more attention to influ- along. company opportunities to make transition from coal to gas, there’ll be encing demand for coal. This can be laboratories was weakened. After attending the confer- “We’ve managed the long deductions. even more room for petroleum.” done by exploiting emission trading Statoil could no longer main- ence, where the prime minister, upturn very well, and can deal A government proposal in the He points in this context to and tax systems, or by promoting tain the same exclusive and open the political opposition and the with the lengthy downturn in a revised national budget to cut the reports from the International Energy alternative energy. relationship with specific suppli- industry have spoken, the pundit good way – without making it level of uplift in the special petroleum Agency (IEA), which show that the “How much oil and gas is to be ers, because it had to give more shares his thoughts on the current sound so terribly dramatic.” tax from 7.5 to 5.5 per cent over four world will need 95 per cent of today’s produced should be determined by emphasis to safeguarding compe- status of Norway’s oil sector. The oil sector must cut costs. years was strongly attacked by the level of oil and gas output in 2035. demand, which is decided in turn by tition. The national mood is domi- Once that is done, Ramm believes industry. That requirement will have fallen climate policy,” Ramm argues. Ramm stresses that Statoil is nated by a sense of crisis, with dis- an oil price of USD 70-80 could “The finance ministry’s theory is to 76 per cent by 2050, with global “Attacking the supply side would naturally an excellent company cussions in many channels about be enough. “The industry can that the capital-based deductions demand for petroleum declining undermine the whole delivery of which has contributed and still what must succeed the nation’s continue with a high level of activ- are too favourable, and thereby gradually. These forecasts build on energy. That’s not particularly effec- contributes much to technology petroleum business. ity, perhaps after some workforce undermine cost-awareness,” Ramm expectations about political decisions, tive, and the world could become development. But things could “It’s important that we manage downsizing.” explains. which are often far from rational and dangerous if energy supplies fail. This have been done differently. to distinguish between the imme- He is therefore concerned that Noting that this view is sharply permit too much use of coal. also has a moral aspect.”

28 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 29 Doubts return over oil jobs Numbers applying for engineering courses in Norway this autumn are unchanged from 2014, but far fewer want to take petroleum- related subjects. Industry associations fear a repeat of the errors made after the last price slump in the late 1990s.

| Alf Inge Molde and Tommy Ellingsen (photos) Wait and see. Students Redwan Hassan Maalin (left), Johnny Phi Tran and Alanah Rochell see that a number of companies which were earlier eager to offer summer jobs are currently doing no more than show that they exist.

The corridors in the University of But not petroleum. “I’ve thought ment there would be dubious.” Norwegian Society of Graduate the latter makes it difficult to secure show that they existed. Stavanger (UiS) buzz even more about it, but it’s in a downturn,” After nine months of one news- Technical and Scientific Professionals the necessary expertise later. “One oil company said it might than usual when 2 500 upper says Rochell, whose mother works paper story after another on falling (Tekna). It also destroys the community be interested in somebody in their secondary pupils across the local at ConocoPhillips. The advice from oil prices, cost cuts, layoffs, redun- She has met a number of people itself – the people with ideas in their fourth year with high average region visit to find what it has to home is that a commitment to oil dancies and declining investment, who describe the mood in the indus- heads. Randeberg warns companies marks,” said Guha. “Nobody else had offer them. and gas would be risky today. the message seems to have got try as “sombre”, and is worried about that making the youngest and oldest a hope.” A bit of showmanship comes Tran’s father works at through to tomorrow’s engineers – the short-termism which prevails in employees redundant reduces their He is in his second year of petro- in handy on such occasions – and Stavanger fabricator Rosenberg prospects for the petroleum sector many companies – reflected in the diversity. leum geology studies. So is Al Furati, icecream, naturally. WorleyParsons, which is also experi- are uncertain. number of calls being received by Norway’s power industry lost a who reports that a number of fellow “It only takes a few seconds,” encing cutbacks. union officials and lawyers. whole generation in that way, and so students have shifted to mechanical explains Arindam Guha, who “I was very tempted by the oil Survey But she nevertheless notes that did the IT business after the dot.com or civil engineering. heads the student branch of the industry in lower secondary school,” the actual number of engineers out crisis. It could now be the oil sector’s But he has decided to continue. Norwegian Society of Engineers and he says. “But I see on the news that That is reflected in a survey con- of work remains low. The Labour and turn, she fears. “The oil price is fluctuating, but it’s Technologists (Nito) at the UiS. it’s in slow decline, so a commit- ducted by pollster TNS Gallup Welfare Service (NAV) reported 4 948 In her view, the industry is always done that.” He checks the lat- He vigorously stirs the mix of for the Norwegian Oil and Gas unemployed engineers and ICT per- repeating the mistake it made in the est prices at least once a week. cream, sugar and vanilla, while Association. When asked whether sonnel in February, a 50 per cent rise late 1990s when many jobs were Beder Al Furati carefully pours on Dramatic decline Classmate Joakim Nesheim, they would recommend an oil- over 12 months – but still only 1.9 shed and few people applied for more liquid nitrogen. And the dish who is already a qualified driller and related education to somebody per cent of this occupational group. petroleum-related studies because is ready in a flash. The Norwegian Society of has three years of experience from Graduate Technical and Scientific they cared about, 64 per cent of Randeberg is particularly con- recruitment ceased. Alanah Rochell, Redwan Hassan Ekofisk, hopes that a BSc and a good Professionals (Tekna) has looked respondents said no, 30 per cent cerned about the consequences this “And the companies weren’t Maalin and Johnny Phi Tran have at primary applications for petro- network will help when he starts job said yes and the rest were unde- will have for recruitment to universi- happy afterwards,” she emphasises. already decided that they want to leum subjects at the Norwegian hunting again. University of Science and cided. ty-level technical studies in Norway. be engineers. The Norwegian Oil and Gas Technology (NTNU). Their number Seven out of 10 people polled Demand for such disciplines will While Rochell, who is already has declined from 286 last year to Association has long spearheaded also expressed concern about the remain high, she points out, and it Changed studying mathematical methods only 77 – a drop of 73 per cent. a drive to boost science studies and After many years of growth and Norwegian economy and welfare takes five years to educate an engi- at the UiS, is primarily interested Guha clearly saw that times had recruitment by the industry, and record figures in 2013 and 2014, state in the wake of the oil price neer to MSc level. Much can happen in civil engineering, the others – the University of Stavanger (UiS) changed during the Industry Day at could report progress in recent years. slump. in such a space of time. classmates at Sola upper secondary has seen a virtual halving in appli- the UiS in January. Many companies Figures from the education min- cations for its BSc studies and “Demolishing something is “The companies must keep their school – are considering computing which had previously actively offered istry show a 40 per cent rise in the five-year MSc courses in petro- incredibly quick to do,” observes nerve rather than pursuing aggres- and electrical engineering as well. leum and offshore subjects. summer jobs now only wanted to main take-up of students for science Lise L Randeberg, president of the sive downsizing,” she adds. Doing

30 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 31 which also makes it important for improved and new measures us to support them. We have a could be taken during 2015. But social responsibility, and thereby press head Anne Cecilie Lund- back the commitment to science Andersen says demand for the studies and take on far more company’s products and services

Stormesteren. Bård Vegar Solhjell får storfint besøk apprentices than we need our- remains robust. That applies par- av Garri Kasparov (til høyre) på boklanseringen sin. selves.” ticularly to the deepwater and Slår et subsea segments. The order back- slag for log is NOK 48.3 billion. smartere Transferred Lund-Andersen maintains that unger Aker Solutions is keen to hire new Aker Solutions is one of the graduates, and that this becomes 24 | NORSK SOKKEL 1-2014 1-2014 NORSK SOKKEL | 25 Facsimile from Norwegian Continental Shelf 1-2014. Norwegian companies which has even more important when the seen a dip in demand, particularly level of activity falls. The company in the maintenance, modifica- is still hiring apprentices, and had tion and operations (MMO) mar- advertised a limited number of A move But not petroleum. Alanah Rochell (left), Johnny Phi Tran and Redwan Hassan Maalin believe a commitment to electrical, mechani- cal or civil engineering will be more secure than petroleum-related studies. ket. So personnel were offered summer jobs. the chance last year to transfer “It’s not necessarily the case to human resources company that recruitment to the industry closer to chess Frontica Advantage. becomes more challenging when and technology courses over the (Iris), petroleum-related activities and reduce its workforce by 1 600- Lasting seven months, this market activity is down,” she in schools past four years. And offers of places employed 186 000 people in Norway 1 900 people. solution was accepted by 500 maintains. for technological subjects in 2014 last year. Tone Rognstad, Statoil’s recruit- employees – with 45 securing a Given the complexity of Aker | Astri Sivertsen were up by 563 from the year before. Petroleum engineers account ment manager, appreciates that new job, mostly outside the com- Solutions’ operations and the for only a fraction of this group, with these two messages are not so easy pany. In addition, 400 consultants technology it works with, she demand equally high for civil and to reconcile, but maintains that both were shed and 40 workers made believes that young engineers will Many good arguments exist for start- Decline mechanical engineers as well as IT are necessary. redundant. still find it attractive to seek work ing to teach chess in schools, as noted experts and a number of other spe- “We’re making every effort The MMO business has not there. in the article on “Game plan for educa- Thina Hagen, communications man- cialists. to recruit young people, despite tion” in the previous issue of Norwegian ager for working life at Norwegian Senior adviser Bjørn Vidar Lerøen being in a restructuring phase,” Continental Shelf. Oil and Gas, is keenly awaiting the at Norwegian Oil and Gas shares she explains. “We must think long- A new move to promote this idea figures on applications for the next Randeberg’s concerns that the term, and it takes years to develop was staged by chess masters Garry academic year. She expects to see a industry is downsizing too much the expertise we need. That’s Kasparov and Magnus Carlsen at the decline for petro­leum-related sub- and sending signals that it offers no entrenched at all levels here.” Norwegian Storting (parliament) on 23 jects. future. Many of the company’s offshore March. A relationship has previously He is in close touch with the workers are aged 50 and above. New While the first-named gave a speech existed between oil prices and appli- companies, and hears both operators fields, like Johan Sverdrup, will be on how the game develops concen- cant numbers at the Norwegian and suppliers saying they are aware operated for decades to come. So tration and decisiveness in children, University of Science and Technology of the problem and working on it. it has a big need for new engineers Carlsen played a simultaneous exhibi- (NTNU) in Trondheim, with a time lag But redundancies continue, particu- and skilled workers. tion against Storting representatives of one-two years. larly among young employees. Rognstad knows from experience – who were helped by talented young These courses are difficult to “They talk about a long-term that it is difficult to secure engineers players. get onto in any event, Hagen points view, but operate on the basis of in the 30-35 age range, and empha- This two-hour session was a cross- out. The queue will simply become ‘quarterly capitalism’,” complains sises the importance of recruiting political initiative organised by five par- shorter. Lerøen. “That tempts them to cut young people even in difficult times. ties spanning from far right to far left in “The level of activity we’ve seen more than they should. But the Statoil currently takes on 130 cooperation with the Norwegian Chess in recent years – with big recruit- industry mustn’t frighten young peo- apprentices annually, compared with Federation. ment challenges, a huge pay spiral ple away.” 170 three years ago. In addition come The goal is a trial project which and the need to recruit foreign 300 students given summer jobs, can demonstrate the effect of chess labour – has been unsustainable,” which Rognstad describes as the teaching on children’s results in school, she emphasises. Topped most important recruitment channel. explains federation chair Jøran Aulin- Nevertheless, Hagen hopes About 80 new graduates are hired on Jansson. applications for science and engi- Statoil has topped the list of a permanent basis annually. “This meeting was a big step for- neering studies remain high overall. favoured employers among engi- Asked whether apprentices and ward. It’ll be used as a reference for That would benefit the oil business, neering students for a number of summer workers are to be regarded future work, where the initial aim is Norwegian industry in general and years, and has devoted substantial as normal recruitment, she explains to get the government to finance a the public sector. resources to securing future person- that they are viewed as temporary research project in 50-100 schools.” According to the Industry Builders nel and expertise. staff. In the longer term, the chess enthu- 2015 report from the International At the same time, the Norwegian “Both categories are key ele- Cutting and recruiting. Recruitment manager Tone Rognstad says that Statoil siasts hope to be able to offer an hour Research Institute of Stavanger oil company wants to cut its costs – ments in Norway’s education system, is giving priority to young recruits while cutting 1 600-1 900 jobs. Eighty new of chess teaching per week for pupils in graduates will be hired this year. years three or four (eight-nine years old).

32 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 33 Mentor. Fridtjof Riis has spent 34 years as a geologist at the NPD. He is an enthusiast not only for his sub- ject but also for inspiring and sharing knowledge with others.

Passionate

working together to look at dis- pline coordinator for geosciences Travelling at high speed, communicator coveries, fields and reservoir for- at the NPD. it struck so forcefully that a mations. “We know it’s safe to let them 350-metre-deep crater measur- He has discovered meteorite craters and won prizes for his contributions to geoscien- “Regional geology was also work with Fridtjof. He’s been, and ing 2.7 kilometres in diameter updated, and the result became still is, a mentor for many – both was gouged out in this highland ce. But Fridtjof Riis is primarily concerned with sharing – both knowledge and acclaim. a geological textbook which at work and as MSc students at region. describes the continental shelf in a various universities. He’s a good “Geologists have long been | Bente Bergøy and Emile Ashley (photo) new way.” educator.” interested in the area around The atlas attracted great atten- His preference for inspiring, Ritland,” explains Riis, who has Now in his 60s, Riis has been a Riis has a strong social and have different objectives than those tion in the world at large. Although sharing knowledge with and realis- himself spent much time there. geologist at the NPD for virtually international commitment, and is of most people. other countries have produced ing the potential of others, rather “Well preserved fossils found in his entire professional career. He active in union and solidarity work. He is interested in geology both similar publications, none are so than promoting himself, was also 1950s theoretically shouldn’t have knew some of those already work- He is also involved in the Oil for on land and offshore, and his work detailed. one of the reasons why he won the existed there.” ing there, and was persuaded – or Development programme at the on regional models for uplift and “We could create this work Brøgger prize in 2014. His theory that the distinctive inspired – to apply for a job in petro- Norwegian Agency for Development erosion is described as groundbreak- because we had access to large The highest honour conferred rock formations and landscape leum administration. Cooperation (Norad). ing. quantities of offshore data,” Riis by the Geological Society of features found locally were caused Many geologists have served “Developing countries learn These contributions include a explains. “In that respect, we occu- Norway, this was presented to Riis by a meteorite impact was finally with the NPD before going on from us, but we learn from them as new understanding of how Norway py a unique position in Norway.” for “contributing at a high schol- confirmed in 2008. to work in the industry. But Riis well,” he affirms. “The differences was subject to large-scale uplift in He is currently studying how arly level to Norwegian geology Although Riis comes across belongs to an exclusive group which between Norway and other oil pro- the Cenozoic – the most recent of water, oil and gas behave in the and geoscience in general through as a fairly modest man, he finds it has stayed. ducers around the world aren’t as Earth’s geological eras, which began sub-surface over long periods of a lifelong commitment”. gratifying that his work has attract- “Opportunities are very good great as you might think. Geology 66 million years ago. That in turn geological time, and serves in the While that award was a profes- ed attention. here for studying subjects which unites us.” has provided a better grasp of conti- NPD’s team for Johan Sverdrup in sional accolade from fellow geolo- “These are two very different interest you in depth, and flexibility nental shelf geology and petroleum the North Sea. gists, the Hjelmeland prize was awards, and it’s a matter of pride is great,” he explains. “The team is plays. “Sverdrup is a big field, which given to him in 2011 by Hjelmeland to have received them both. I feel small and you deal with the whole Interests Riis says that his most interest- will generate income – and tech- local authority for identifying the that creates an obligation to keep NCS. ing recent project has been the CO2 nology – over a long time,” he Ritland crater. going.” “That gives you a huge overview. Riis has a wide range of interests, Atlas, an overview of suitable loca- observes. “It’s important that deci- This is one of two meteor- A natural question is what he At the same time, the NPD performs including mathematics, physics, tions for secure long-term under- sions taken now, in the first phase, ite crashes discovered on the thinks will happen with future an important role in society.” astronomy, plants and animal life. ground storage of carbon dioxide on lay the basis for a good production Norwegian mainland, and the local recruitment to the geosciences Since joining the directorate in He originally intended to become a the NCS. strategy throughout its producing community has valued the positive now that the petroleum sector is 1981, Riis has also spanned a very botanist, but took a geology course, “This publication turned out very life.” way Riis presented his find. experiencing difficult times. wide range of activities, including got a summer job at the Norwegian differently than we’d expected when Together with scientists from He emphasises that the disci- exploration and reservoir technol- Geological Survey (NGU) – and was starting the job on behalf of the the department of geoscience pline covers much more than oil ogy for most of Norway’s offshore hooked. Ministry of Petroleum and Energy,” Support at the University of Oslo (UiO), and gas. “Geologists are always oil and gas fields. Asked whether he only looks at he explains. he succeeded in document- going to be needed. Geology is In addition come 36 published rocks when out for a walk, he says “We were to document what we Riis often provides support for ing that a chunk of rock had hit the mother of all natural sciences, scientific articles in journals and that other things also attract his knew about the sub-surface, with younger and less experienced Vormedalsheia north-east of you know.” books, including nine as lead author. attention. But his hikes undoubtedly geologists and reservoir engineers geologists, says Janka Rom, disci- Stavanger.

34 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 35 Facts for the future – or scaremongering? 16 16 14 14

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4 4 Actual 2 Forecast 2 Production forecasts for the NCS have sys- tematically been too conservative, writes 0 0 Osmundsen. (Archive photo from Valhall in the North Sea, BP) 1970 1980 1990 2000 2010 2020 2030 2040 | Petter Osmundsen Figure 1. Petroleum sector demand. Norwegian prime minister Erna negative predictions of the petro- declining trend in demand from Percentage of mainland Norway GDP. Source: Solberg and her minister of leum industry on information the petroleum sector to begin resources. An indication of this is high and growing. substantial contraction in explora- Official Norwegian finance, Siv Jensen, have present- reproduced by the Productivity about five years from now. In our provided when it comments that According to Rystad Energy, tion activity at an oil price of USD Reports, NOU ed figures which purport to show Commission of 2015, which was view, production will first begin SSB (2013) is an update of another international turnover for 94 per barrel, and that it makes 2015:1, Productivity – Underpinning Growth a dramatic decline in demand based in turn on an SSB report to fall in the 2020s and this reduc- Cappelen et al report from 2010: Norwegian suppliers totalled NOK no mention of the uncertainty and Welfare, taken from the country’s petroleum by Cappelen et al – hereafter tion is likely to continue towards “Public balances now clearly 206 billion in 2013. This represents related to its own forecasts. from Official Norwegian industry. referred to as SSB (2013). 2040.” appear more solid than three a substantial segment of the sup- I interpret the report such that Reports, NOU 2013:13, Wage Formation and These forecasts derive from a This contains a figure which years ago, and larger oil reserves plies industry, and oil companies it completely ignores additional Challenges Facing the Norwegian Economy. This is an edited 2013 report commissioned by the appears to show a sharp decline than earlier assumed have been in Norway also have considerable resources from newly opened and abridged ver- Ministry of Finance from Statistics in domestic demand from the Estimate proven. Demand from the petro- activities related to projects in areas of the Barents Sea: “Our sion of a paper by Norway (SSB) on the future down- petroleum industry after 2015. leum industry is accordingly other countries. reference scenario assumes that Petter Osmundsen, scaling of the petroleum sector. The ministers concerned The figure reproduced by the expected to remain higher for The report’s reference trajec- petroleum production declines professor of petro- leum economics When a closer look is taken at seem to believe that SSB was able Productivity Commission is based longer into the future than we tory would therefore become gradually between 2030 and at the University the basis for the forecasts, how- in 2013 to predict the sharp cycli- on a price estimate of USD 94 assumed in the 2010 study.” more positive if it allowed for the 2040. A price estimate of USD of Stavanger. The ever, they turn out to be far less cal downturn now being experi- per barrel in 2013 value, which This type of underestimate is possibility that reduced activity 90 per barrel, measured in 2013 full English version dramatic than when presented in enced by the petroleum industry remains flat up to 2040. normal. at home could be partly offset by prices, will help to ensure mod- is available on the NPD website at compressed graphs. SSB actually after the growth in costs and the That is a trend projection of Figure 2 shows that produc- expanding operations abroad. est profitability for fields in Arctic www.npd.no/en/ predicts an annual decline of 0.4 price slump, and that this decline a base scenario, and the report tion forecasts for the NCS have areas, and can in itself contribute Publications/. per cent as a proportion of main- is permanent. does not address short-term eco- consistently been too conserva- to reducing the industry’s desire land GDP. However, reading the actual nomic fluctuations of the kind tive. Among other considerations, Resources to expand towards the far north.” A number of objections can SSB report – entitled The impact being experienced today. they fail to take account of the Reserves and production are also be levelled at the analysis. of the petroleum sector on the Nor does it paint a dramatic political response to a decline. SSB notes that Rystad Energy quite simply not attributed by SSB SSB takes no account of a pos- Norwegian economy and pay for- picture. Output will stay stable Active policies in the form of (2013) has produced forecasts to areas which the oil companies sible price recovery, underesti- mation. Future downscaling and until 2020 before falling gradually. relicensing of relinquished acre- extending further ahead in time, have been eager to have opened. mates the available resources and sensitivity to oil price shocks – cre- As noted above, demand for the age, admitting new players to the which estimate that big resources Does it know something other ignores possible expansion in ates a different impression. Norwegian economy, and spe- NCS and the tax refund scheme exist in the recently opened areas people do not? that part of the supplies industry The conclusion is as follows: cifically for the supplies industry for exploration costs have given a of the Barents Sea. As far as I am aware, SSB does which delivers to foreign markets. “The petroleum industry and delivering to the NCS, is expected substantial boost to operations. However, SSB choses to not possess sub-surface expertise, The report is not a best the activities which follow in its to decline by 0.4 per cent per My interpretation of the SSB ignore this since “the methodol- and the petroleum industry has estimate of the future of the wake are now substantial, even if annum as a proportion of main- report is that it deals only with ogy underlying these estimates been gradually moving north- Norwegian oil industry, but a production has declined from the land GDP. deliveries to activities on the is not presented in the report, so wards. downscaling scenario. peak year almost a decade ago. That is very different from the NCS and excludes exports, and that the uncertainty appears very SSB positions itself within a “Demand from the industry more dramatic picture painted this has been confirmed by its great”. tradition of sceptics who predict is likely to continue growing for in the Norwegian media, and the authors. I must add here that SSB that activities further to the north Negative some years, while production predicted decline is the same as That explains why the itself says nothing at all about will not be profitable, and who could remain stable for just under the one from 1993 to 2002. Norwegian resource base the methodology underlying time and again have been proven Some members of the gov- a decade to come. I believe SSB systematically becomes so significant for the its own production projections, wrong. ernment seem to build their “We expect a moderate underestimates undiscovered estimates. These exports are very which include the prediction of a

36 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 37 Reorientation and suppliers thinking of making a ment mean that the effective rate is commitment in Norway. actually lower than this. ROCKSHOT The government wants a reorienta- The downscaling of the petrole- Britain already allows direct tion from the oil sector to mainland um sector appears to be determinis- expensing of investments, a more industries. That appears to rest on tic in the government’s analysis, and beneficial solution for the compa- overall macroeconomic consid- to provide arguments for encourag- nies than Norway’s depreciation erations, rather than on industrial ing mainland productivity. system. analysis. It is important to remember That is now being supplement- More than half of Norway’s that making provision for increased ed by an uplift of no less than 62.5 petroleum resources remain to be value creation on the NCS will also per cent, which replaces several recovered, and the country has be possible – activity is a function of earlier targeted exemptions. Since been in the top 10 list of the world’s existing and anticipated operating the latter had an upper limit, the biggest discoveries for several years parameters. A quote from SSB (2013) introduction of uplift will mean a in a row. could be pertinent here: substantial tax relief in most cases. An extensive infrastructure has “Petroleum activities are impor- The overall impression provided been built up in transport and pro- tant for the Norwegian economy. by the Norwegian oil industry, on cessing of oil and gas, which must The gross product in the petroleum the other hand, is a deterioration in be exploited while it remains intact. sector, defined in the national operating parameters. Substantial resources remain in accounts as the production and • Taxation was tightened in 2013 mature fields, and recovering these pipeline transport industries, by a reduction in tax-related is time-critical. accounted in 2012 for almost 25 per depreciation, in part with refer- Fields on the NCS continue to cent of GDP. ence to a high level of activity. provide an extraordinary pre-tax “However, the bulk of this, 67 When the latter falls, the tax return and can yield big revenues per cent, is value added to the input changes should be reversed. But for the government. A continued factors, which in principle comprise there is no sign of that happen- commitment should accordingly be that part of the gross product which ing. devoted to this industry, and efforts exceeds normal factor earnings. • When the tax increase was made to avoid a deep downturn “This is what is known as the petroleum rent. The government’s implemented, the previous Raining ash which causes the loss of jobs and government talked a lot about expertise before the next recovery. revenues from petroleum opera- study­ing tax reliefs for land- | Christian Magnus (text and photo) In choosing to exploit a con- tions have corresponded to about based facilities in northern trived crisis in the oil industry, the 90-95 per cent of the petroleum Norway. This remains an open government is presumably seeking rent in recent years.” issue. to emphasise the need for reforms A very sharp contrast can also in mainland Norway. That require- be seen with actual policies for the • The current coalition’s political ment stands on its own two feet oil industry. That is problematic at a declaration states that measures – talking down the oil industry is time when producer countries are for mature fields will be stud- unnecessary. competing to attract scarce funds ied. This appears to have been The problem with presenting from oil companies which are cut- shelved. graphs which show Norwegian oil ting costs and rationing investment Measures to improve operating activity to be in free fall lies in the spending. parameters for mainland industry adverse signal this sends about the The British have now announced are sound. At the same time, it is industry’s future. a big easing in their fiscal burden, important to take care of the oil sec- It has a harmful effect on educa- with the marginal tax rate for new tor. The approach should be indus- tional choices by young people, oil fields being reduced to 50 per cent. Lava and volcanic ash erupted 55 were blasted out of the ground. scape of what is now the North try-neutral – and fact-based. companies considering investment, Favourable deductions for invest- million years ago from fractures The methane in this blowoff, Sea but was then partially dry which would later become the combined with much carbon land. This was just a brief tropical 300 North Atlantic. Greenland lay dioxide, caused a dramatic rise episode in Norway’s geological A young Jan adjacent to the NCS at that time. in temperature for a brief period history. Steinløkk from the 250 Drilling in the old volcanoes – just a couple of million years. Today, the volcanic ash lies NPD in front of sedi- beneath the Norwegian Sea and Fortunately for Norway, the huge beneath a layer of sediments ments at Fur on the Lim Fjord, laid down all the other wells off Norway quantities of lava and igneous deposited after the vulcanism 55 million years ago 200 have provided much information rocks in the Norwegian Sea dat- had ceased, and has largely been with light layers of about this period of geological ing from this time are a rare phe- converted to viscous clays known shelly fossils and darker stripes of history. nomenon. as the Balder and Tare formations volcanic ash. 150 Ash from the eruptions was A similar period of large-scale in the North and Norwegian Seas Resource report 2005 Mill Sm³ Mill Sm³ oe carried near and far on the winds. volcanic activity occurred in respectively. Resource report 2007 Sub-surface arms from the vol- Siberia at the end of the Permian, The small picture depicts 100 Resource report 2009 canoes penetrated between the when 90 per cent of animal and microscopic shelly fossils of Resource report 2011 thick layers of sediment deposited plant species died out. marine algae. The other shows Figure 2. Production forecasts for Resource report 2013 50 the NCS. Current forecast compa- in the Vøring and Møre basins. Things were luckily not sediments dating from 55 mil- The long-term development trajectory red with the long-term development Heat from the magmatic quite that bad 55 million years lion years ago, with light layers of trajectory and the depletion trajec- Depletion trajectory chambers, the volcanoes and ago, at the transition from the algal shells and darker stripes of Electron microscope tory from a 2002 White Paper. Data image of shelly 0 source: NPD their long vents meant that large Palaeocene to the Eocene. volcanic ash. Both hail from Fur fossils from Fur. 2000 2005 2010 2015 2020 2025 2030 quantities of gas previously con- Remote ancestors of hippos on Denmark’s Lim Fjord. tained in clay and sandstones browsed in the sub-tropical land- 38 | NORWEGIAN CONTINENTAL SHELF 1-2015 1-2015 NORWEGIAN CONTINENTAL SHELF | 39 Return address: Norwegian Petroleum Directorate P O Box 600, NO-4003 Stavanger, Norway

Porto betalt ved innleveringen P.P. Norge/

Norvège B-blad

Facts sited A fixture on many desks in and around the Norwegian oil industry is no more. The annual Facts publication has been replaced in a new and improved format by the www.norskpetroleum.no website. Facts 2014 was the last in the printed series published by the Ministry of Petroleum and Energy (MPE) and the NPD to describe and provide factual information on the Norwegian petroleum sector. The MPE and the NPD launched Oil Facts in 2013 as an app for mobiles, with data from the purely factual section of the printed book. This is still available in versions for various phones. On the new website, the content has been reorganised to tie descrip- tions and facts more closely together. Articles and facts are illustrated with photos, graphics and maps. All information is accessible from any digital platform, and the content can be downloaded, printed out and shared by mail or on social media. Provided in both Norwegian and English versions, www.norskpetro- leum.no contains information on such aspects as: • the significance of the petroleum sector for the Norwegian economy • a description of current activities on the NCS • organisation of the petroleum sector • regulatory parameters throughout the industry life cycle, from opening new exploration acreage to field cessation • facts about fields, discoveries, companies, exploration activities, production and the resource base on the NCS • emissions/discharges, measures to reduce them and oil spill response • the supplies industry and the commitment to research and technology Oil Facts

• explanations of terminology and an energy calculator. The iPhone app from the NPD Links to more detailed information are provided for each topic. As with and the Ministry of Petroleum and Oil Facts, part of the factual information will be synchronised on a daily Energy is available in an updated basis with the NPD’s fact bases. version. This can be accessed in The new site is intended for a broad audience, and accordingly rep- the App Store by searching for Oil resents a supplement to the NPD’s own fact pages and maps. These are Facts. The app is also available for aimed to a greater extent at professional users. Android and Windows phones.

www.npd.no ISSN: 1504-1468

40 | NORWEGIAN CONTINENTAL SHELF 1-2015