The overall aim for petroleum policy

Transcription

1 Tools Available for the Government Legal and Regulatory Framework Egil Meisingset Assistant Director General Ministry of Petroleum and Energy The overall aim for petroleum policy The overall aim for the Norwegian petroleum policy is to maximize the value of our petroleum resources for the benefit of the Norwegian people and society, within the framework of the health, safety and environment This is an aim all countries shares 1

2 Value, Technology and Experience In order to realise this overall aim, access to the best technical expertise and the most comprehensive experience is necessary Value, Technology and Experience Much of this technology and experience is found with the international oil companies and the international supply industry Access to the latest technology and contribution from the international petroleum industry have been important factors in establishing Norway as one of the largest petroleum exporters in the world 2

3 Roles of IOC Must use the international petroleum industry as agents/tools to obtain the states goals Important to give the industry incentives to use their expertise in all stages of the petroleum activity How is this handled in Norway? The industry nominates blocks, identifies drilling targets, makes development plans, undertakes the development and production and in the end comes up with plans for decommissioning In all these activities the authorities is mainly monitoring the work that the industry is doing and approving important actvities Through the joint ventures in the Production Licenses the oil-companies are both partners and competitors It also creates a system of internal checks and balances 3

4 International participation - national control It has however been equally important to have national control over the management of our resources There is obviously a potential for conflicts between national interests and the interests of the international petroleum industry Every piece of information from the petroleum activity must be reported to the authorities Monitoring of the activity Every important activity is subject to government approval Increased international competition Not only has it been important for Norway to have the best international companies as active participants on the Shelf, but these companies have to use their best resources/people in Norway Achieving this have been increasingly more challenging as the international competition form other petroleum provinces have been increasing 4

5 Framework conditions The main asset for attracting international companies is naturally the resource base However, the framework conditions are also very important Fair, sufficiently attractive, predictable and transparent framework conditions are a necessity for getting long-term commitment from the international petroleum industry Resource management instruments Licence Approval of plans for development Conditions Production permit Approval of disposal of facilities Regulation of infrastructure 5

6 Development plans Plan for development and operation (PDO) Development of a petroleum deposit Consists of Development part Environmental impact assessment Plan for installation and operation (PIO) Installation of facilities for transport and utilisation of petroleum Consists of Installation part Environmental impact assessment Purpose: Ensure optimal exploitation of the petroleum resources PDO and PIO Contents of PDO/PIO Description of plans: General description of project/production licence Economic analyses Technical description Production strategy and reservoar engineering aspects (PDO) Possibilities for use of facilities by others (PIO) Substantial contractual obligations Environmental impact assessment (EIA): Description of plans for development and impact on environment, natural resources and society Discussion of positive and negative consequenses which may occur Discussion of remedial measures 6

7 Approval process PDO PDO/PIO (Plan for development and operation) Consists of two parts Technical Elements EIA Environmental Impact Assessment Technical Assessments Public Consultation Evaluation from NPD and PSA Feedback from stakeholders Government Overall assessment Proposed solution for decision by: King in Council or National assembly Considerable Remaining Potential in Fields 7

8 Increased Recovery Add reserves in and near producing fields Incremental recovery Develop discoveries Extend field life Explore near infrastructure 8

9 The Norwegian Gas Sector Around 50 fields producing gas Two of Europe s largest gas processing plants More than km of offshore pipelines Sales of 82,5 BCM in 2005 (2,87 TCF) Norway supplies about 15 % of European gas consumption Organization of the gas sector Companies individually produce, transport and market their gas Producers own pipelines (Gassled JV) Independent pipeline operator -Gassco Regulated access regime for gas transportation 9

10 Gas exports 82,5 BCM in 2005 St.Fergus Dunkerque 14 % 20 % Zeebrügge 17 % 10 % Emden 39 % Dornum New Capacity from the NCS to the UK Significant capacity increases from the NCS in 2006 and 2007 Langeled Tampen Link Ormen Lange on stream in 2007 will supply the UK market with 20 BCM/y 10

11 G/snøhvit/flw/adm/280201KBL Ormen Lange Production start: Recoverable reserves: Production: Water depth: Investments: Approved by the Norwegian Parliament: BCM gas ( TCF) 29 MCM condensate 21 BCM/yr gas (0.7 7 TCF) metres Approx. 53 BNOK Spring 2004 Snøhvit LNG The Snøhvit field is the first development in the Barents sea The first large-scale LNG project in Europe Melkøya Opens new markets for Norwegian gas (US market) Investments $ 9 bln. / 7.5 bln. Recoverable reserves: 6.7 TCF Annual LNG production 5.7 BCM / 4.1 million tonnes Production start

12 Share of Remaining Gas Reserves on the NCS (based on NPDs official estimates as of ) ConocoPhillips 3 % ExxonMobil 4 % Shell 7 % ENI 2 % DONG 2 % Others 2 % Total 6 % SDFI 42 % Hydro 12 % Statoil 22 % Source:NPD fact pages, jan Organisation of the Gas Activites after the GFU Up to 2001 gas sales were centrally controlled by the state The Gas Sales Committee (GFU) marketed all Norwegian gas The Supply Committee (FU) assisted the Government in allocation of sales contracts to fields The GFU/FU system removed due to: Well developed upstream gas pipeline network Market opening downstream Then possible for Norwegian producers to take positions downstream More short-term sales in a more developed European gas market Company-based sales more adequate Sound resource management is ensured by: Awards of production licences Approvals of PDOs and PIOs Production permits Regulated gas transportation 12

13 Independent operator of the gas transportation system Gassco Gassco has no ownership in gas resources infrastructure Gassco administers the regulated access regime Architect coordinating further development of the gas transportation system 100% state ownership Petoro Statoil Hydro ExxonMobil Total Shell ConocoPhillips Eni 13

14 Open access to upstream pipeline network All spare capacity in upstream pipelines is open for third parties Non-discriminatory access for natural gas undertakings and eligible customers, with need for transportation Negotiated tariffs for gathering lines (terms subject to MPE approval) Regulated tariffs for most of upstream pipeline system Tariffs stipulated by MPE in separate regulation Open access to upstream pipeline network Entry / exit system within 5 tariff zones/areas Area A rich gas from Tampen to Kårstø (Statpipe) Area B rich gas from Halten to Kårstø (Åsgard Transportation System) Area C processing facilities at Kårstø Area D dry gas pipelines Area E processing facilities at Kollsnes 14

15 Open access to upstream pipeline network Entry / exit system within 5 tariff zones/areas Area A rich gas from Tampen to Kårstø (Statpipe) Area B rich gas from Halten to Kårstø (Åsgard Transportation System) Area C processing facilities at Kårstø Area D dry gas pipelines Area E processing facilities at Kollsnes Summary Predictable and transparent framework conditions are crucial National control and expertise Contributions from the international petroleum industry use of best technology and expertise Incentives that makes the private companies work towards the same goals as the State 15