UK-Norway North Sea

Co-operation Workgroup- Transport & Infrastructure Theme

Simon C BennettBusiness Unit Leader

BP, North Sea Infrastructure

Overview – Where are We?

• UK gas demand and security of supply – Norway gas resource

• Inefficient or sub-optimal development of near median line resource

• Infrastructure ullage

• Hurdles to cross border business …… some joint, some UK, some Norway… some real, some perceived

• T&I being worked both Norway and UK sides

• Key issues

• Case Studies

• How to overcome hurdles

• Government involvement

Progress

Business Context

Physical/TechnicalNTS CapacityFiscalGovernment/LegalInfrastructure Marketing

Issues being worked

Issue groupings

Joint UK Norway

Physical/Technical Gas spec & metering; Standards; Inspection & regulation

Longevity; Conflicting field developments; Wet vs. dry gas.

Supply capabilities

NTS Gas specification (?) St Fergus entry charges; Predictability of entry charges.

Fiscal Tax leakage UK / Norway; Reduce uncertainty.

Differential treatment of infrastructure

Fiscal boundary on future projects

Legal Treaty amendment / new; Double jurisdiction; Differences in approval, regulation, inspection processes

Competition law – existing JOAs

Infrastructure Marketing

Codes of Practice (?) Size of prize

Develop UK offer Increase UK understanding of Gassco, Gasled II.

Case Studies & Teams

Case Study Analogue Transport & Infrastructure

New cross-border field development

Gudrun Rune Brathen (Statoil)

Roger Wilson* (Marathon)

Field Re-development Statfjord – Brent Fiona Macleod (Shell)

Svein Roar Englesen (Shell)*

Cross-border

oil transportation

Ula-Gyda Jan Norheim* (BP Norway)

Andrew Hadjitofi (BP UK)

Large gas

transportation/processing

Ormen Lange Chris Spencer* (Shell)

Andrew Hadjitofi (BP)

* Lead NPD / DTI will input to all Cases

Issues for Gov’t - Gov’t Attention

o     

• Treaty clarification & enhancements

• Tax transparency & leakage

• Joint Infrastructure Code of Practice?

• Helping industry understand and adapt to UK-Norway-EU issues, e.g. Competition Law

• Participation and Technical input to case studies

Forward Plan

• Develop case studies jointly to illustrate the issues

• Seek ways forward on solutions

• Identify global analogues where barriers have been addressed

• Provide input to the Economics Group to assist in defining the size of the prize

• Joint report under development

• Further joint T&I Group Meetings planned for June