NORWAY TO LET FOREIGN PRODUCERS IN ON GAS TALKS

Beginning in August foreign companies will be represented in specific sales agreements handled by Norway's gas negotiating committee (GFU). In a move to tie field development closer to gas sales contracts, the Ministry of Industry and Energy will invite foreign operators to join negotiations on gas sales from fields in which they hold license interests. GFU, made up of Den norske stats oljeselskap AS and Norwegian producers Norsk Hydro AS and Saga Petroleum AS, previously negotiated all

July 26, 1993

3 min read

Beginning in August foreign companies will be represented in specific sales agreements handled by Norway's gas negotiating committee (GFU).

In a move to tie field development closer to gas sales contracts, the Ministry of Industry and Energy will invite foreign operators to join negotiations on gas sales from fields in which they hold license interests.

GFU, made up of Den norske stats oljeselskap AS and Norwegian producers Norsk Hydro AS and Saga Petroleum AS, previously negotiated all sales contracts on behalf of Norwegian operators.

GFU won't change. Statoil will continue to provide GFU's chairman and secretariat, and the three companies will continue GFU's role as adviser to the ministry on development and use of gas assets.

Based on the extent of license operatorships, the ministry said foreign operators that will be involve in future negotiations are AS Norske Shell, Phillips Petroleum Co. Norway, Norske Conoco AS, Elf Aquitaine Norge AS, Esso Norge AS, Total Norge AS, and Neste Petroleum AS.

The Norwegian government called for Norway's three gas producers and the foreign gas producers to form a separate body from the GFU, which will provide additional advice on supply issues. A first meeting is proposed for August.

Disclosing plans to change GFU's makeup in May, Prime Minister Gro Harlem Brundtland said GFU will in the future decide which fields provide gas under a contract before the contract is signed (OGJ, May 24, Newsletter). Gas allocation previously occurred in the field development cycle.

TROLL GAS SALES

In the latest action involving Norwegian gas sales, Germany's Ruhrgas AG, Essen, BEB Erdgas und Erdol GmbH, Hanover, and Thyssengas GmbH, Duisburg, wrapped up agreements with producers for the purchase of an additional 125 bcf/year beginning in 1996. GFU agreed to provide an extra 70 bcf/year.

Ruhrgas also excercised its option under a Troll gas sales agreement of 1986 to take 55 bcf/year when the gas development project goes on stream in 1996.

The agreement between GFU and German gas distributors is the first of several expected to flow from negotiations over Troll field gas that have taken more than 1 year.

Sales from Troll, Sleipner, and other fields developed under the the Troll sales agreement are expected to plateau at about 1.6 tcf/year, with German companies to take 780 bcf/year.

Germany imports about 320 bcf/year of gas from Norway, accounting for 14% of total demand. By 2005 Ruhrgas estimates Norwegian imports will reach 710 bcf/year, or more than 25% of German demand.

GFU is continuing talks over pricing of other Troll gas supplies with state monopolies Gasunie of Netherlands, Distrigaz SA of Belgium, Austria Ferngas GmbH, and Gaz de France.