Minutes of Meeting Norwegian Oil and Gas Branch Board for Oil Companies
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1 Minutes of Meeting Norwegian Oil and Gas Branch Board for Oil Companies Meeting No 1/2013 Date/Time: Thursday 14 March 2013, 9:30 12:00 am Location: Norwegian Oil and Gas offices, Sandnes Present Bayerngas Norge AS Dong E&P Norge AS Eni Norge AS Exxon Norge AA Explora Petroleum AS GDF SUEZ E&P Norge AS Lundin Norway AS Petoro AS Statoil ASA Suncor Energy Norge AS Talisman Energy Norge AS Wintershall Norge ASA Arne Westeng Philip Johannes Lafeber Arild Glæserud Ståle Gjervik John Pickard Atle Sonesen Andreas Hildeng Kjell Pedersen Frode Fasteland Turlough O'Riordan John Vemmestad Ulrich Bollhauer Apologies AS Norske Shell BP E.On Ruhrgas Norge AS Fortis Petroleum Exploration AS Hess Svenska Petroleum Exploration AS VNG Norge Monika Hausenblas Rebecca Wiles Haakon Haaland Michael S. Haagaard Brita Holstad Torgny Berglund Idar Kjørlaug Others Anniken Maurseth, Det Norske Agenda item 7 Øystein Joranger, Norsk olje og gass Agenda item 8 Malvin Dagsland, PST Agenda item 10 Gry Bull-Hansen, PST Agenda Item 10 Ståle Kyllingstad, CEO IKM Agenda item 11 Norwegian Oil and Gas Administration Director General Director Industry Policy Director HSE and Operations Konkraft secretariat Gro Brækken Erling Kvadsheim Knut Thorvaldsen Gunnar Myrvang 1
2 Manager, expertise Agenda Målfrid Rønnevik 09:30 FOR RESOLUTION 1. Approval of minutes 2. The health and safety report 3. The activity report 4. Norsk olje og gass work program for Preparations for wage negotiations findcontracts.no, an initiative for a national information site on contracts 09:40 FOR INFORMATION 7. Publication of exploration results. Industry practice vs. the insider trading regulations. Recommendations from a Norsk olje og gass working group (Anniken Maurseth, Det norske) 10:00 FOR INFORMATION 8. Forum for HSE regulations status of work and a request for input from the member companies (Øystein Joranger, Norsk olje og gass) 10:15 FOR INFORMATION 9. Norsk olje og gass initiatives to fill the competence gap, in particular related to the Rig Expert Group recommendations (Målfrid Rønnevik, Norsk olje og gass) 10:30 FOR INFORMATION 10. Threats and vulnerability of the petroleum sector in Norway (PST The Norwegian Police Security Service) 11:00 FOR DISCUSSION 11. Large construction contracts awarded to overseas yards. The consequences for the supplier industry and competence base in Norway. Introduction by Ståle Kyllingstad, CEO IKM 11:50 FOR INFORMATION 12. Items for information from the administration 2
3 a. KonKraft initiative for a discussion arena on why EPC contracts etc. go to Asia (Gunnar Myrvang, KonKraft) b. Norsk olje og gass contact meetings with Ministry of Trade and Industry and Ministry of Education and Research (Maiken Ims, Norsk olje og gass) 13. Any other business 1. Approval of minutes Resolution The minutes of the Norwegian Oil and Gas branch board meeting on 4 th October 2012 were adopted. 2. Health and Safety The safety reporting KPIs per end of January had been submitted for information and pre-read. No comments were made other than a general acceptance that it is too early in the year to judge how the KPIs are met. 3. The activity report The activity report had been submitted for information and pre-read. No comments were made. 4. Norwegian Oil and Gas work program for 2013 The work program for 2013 had been submitted for information and pre-read. Gro Brækken explained that the strategy statements had been approved by the Board and was meant mainly for internal use. Regarding item 2.1 natural gas initiative: Kjell Pedersen, Petoro, asked for clarification about Norsk olje og gass involvement regarding natural gas. Gro Brækken replied that Norsk olje og gass does not intend to compete with the companies own work and their contacts towards EU or other stake holders. The purpose is to provide general information and raise the awareness of gas issues internally and the importance of Norwegian gas export in Norway in general. Merknad [EK1]: Ny formulering etter innspill fra Kjell Pedersen 3
4 Regarding item 2.3 oil spill preparedness: John Vemmestad, Talisman, commented that this work seemed to overlap with NOFO s activities and encouraged the administration to ensure that there is no doubling up of efforts here. Regarding items 4 Operations etc.: John Vemmestad, Talisman, commented that the strategy should include more regarding cost benefit analyses and use of the ALARP principle. 5. Preparations for wage negotiations 2013 The Outline of the mid-term settlement 2013 by LO and the 2013 wage settlement negotiation authorization by NHO had been submitted for information and pre-read. 6. findcontracts.no, an initiative for a national information site on contracts Information on the findcontracs.no initiative had been submitted for information and pre-read. A question was raised why information on a vendor was included. The administration commented that Navitas is a non-profit organization and that Norsk olje og gass was in the process of entering into a MoU with this organization in order to promote the use of this information site. 7. Publication of exploration results. Industry practice vs. the insider trading regulations. Recommendations from a Norsk olje og gass working group Anniken Maurseth, Det norske, presented the work and some preliminary recommendations from a Norsk olje og gass working group. 8. Forum for HSE regulations status of work and a request for input from the member companies Øystein Joranger, Norsk olje og gass, gave a status report. He also invited input from member companies in the process. 9. Norsk olje og gass initiatives to fill the competence gap, in particular related to the Rig Expert Group recommendations Målfrid Rønnevik, Norsk olje og gass, gave a brief overview of various initiatives. Kjell Pedersen, Petoro, suggested that more emphasis should be put on the challenge related to the manning rules (2-4) offshore. The operators and the Norwegian Ship-owners Association should find a way of addressing this issue. One way could be to find a temporary solution (e.g. 2-3) that can be made permanent in the long run. He suggested that the cost and obligations must be shared with the ship-owners. 4
5 10. Threats and vulnerability of the petroleum sector in Norway (PST The Norwegian Police Security Service) A presentation was held by Senior advisor Gry Bull-Hansen, PST Oslo and Malvin Dagsland, PST Rogaland. At the request of PST the presentation will not be issued. 11. Large construction contracts awarded to overseas yards. The consequences for the supplier industry and competence base in Norway. Ståle Kyllingstad, CEO of IKM and chairman of Norsk Industri Olje og Gass, gave an introduction to the issue. He focused i.a. on the fear of competence loss at the offshore yards and of lesser quality on fabrication in other countries. The subsequent discussion included i.a.: The need for a thorough the tender process. Operators in Norway should consider potential capacity constraints in Korean yards carefully. The risk assessment must be in focus during the bid assessment process. Norway is good at project integration, but not competitive on cutting and welding steel. The final price tag should be more in focus. There was no conclusion to the debate, but both there was a general realization that the offshore yards are in the middle of a transition phase and that Norwegian supplier industry will move into more engineering and less fabrication. Kyllingstad commented that the uncertainty, in reality, lies in what pace it moves in. 12. Items for information from the administration a) Gunnar Myrvang, KonKraft, informed briefly of the process of establishing an arena (e.g. a working group) for discussion of the issues above. b) Maiken Ims, Norsk olje og gass informed briefly of Norsk olje og gass planned contact meetings with the Ministry of trade and industry and the Ministry of education and research. 13. AOB No issues were raised. 5
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