This is the conclusion in a report prepared by the Agenda Kaupang analyst company for Statoil. The report builds on three different scenarios presented by Statoil today for field development of the area.

Statoil’s industrial outlines are based on the resource estimate made by the Norwegian Petroleum Directorate (NPD), and show several potential development solutions.

Both offshore solutions and landfall alternatives have been studied. The analysis states that petroleum activities in Nordland VI and VII will provide major local and regional spinoff effects. The landfall alternative will give the largest spinoffs for Nordland county and the figures for this scenario indicate that:

  • The trade and industry in the region can expect operational deliveries worth up to NOK one billion per year from the petroleum activities. This will have major spinoffs in many areas, from public services to tourism.
  • Property tax from onshore terminals could amount to NOK 170 million per year.
  • Development of the facilities will require large local contributions, especially in the construction and building industry the demand will strongly exceed the available capacity.

“Statoil has previously stated that our preferred solution is to transport the resources in this area through a subsea pipeline to land,” says head of Statoil’s far north initiative Hege Marie Norheim. “The work we have completed shows how this could be done and the consequences. At the same time we must underline that these industrial outlines are based on our current knowledge of the area. Hence there is an upside and a downside related to these estimates and it is not possible to fully predict all aspects of any future development.”

New environmental base in LoVe
Statoil is prepared to meet strict environmental requirements for operations in Nordland VI and VII. During the preparation of the industrial outlines the possibility of establishing a separate environmental base in the Lofoten or Vesterålen areas has also been studied. Statoil’s “Miljøbase LoVe (environmental base LoVe)” could be a green base for supply, maintenance, environmental monitoring, sea surveillance and oil spill preparedness.

NOK 120 million for industrial development and scientific subjects
Improving the trade and industry in the far north to prepare it for the industrial development that would be the result of exploration activities in new areas is important to Statoil. On this background Statoil will spend around NOK 120 million over a five-year period on developing new suppliers, supporting scientific subjects and training apprentices in the three northernmost counties.

Breakthrough for the supplies industry in the far north
Statoil is already actively involved in the industrial development in Northern Norway. Around 1,000 of the company’s employees work in the three northernmost counties, of a total of around 3,500 oil industry personnel. Right before the Norwegian summer holiday season Statoil awarded new contracts for maintenance and modification work as well as inspections. These awards have rightly been called a breakthrough for the supplies industry in Northern Norway.  

  • Noweco in Harstad was chosen to carry out operational inspections on Snøhvit and Norne. 
  • Aibel was awarded the contracts for maintenance and modifications on Snøhvit and Norne. They have chosen Momek as their sub-supplier, which in turn has signed contracts with the Hålogaland Olje and Energy supplies network. Aibel furthermore requires that all engineering work related to the contracts must be carried out from Harstad and Hammerfest.

As a result of these awards many new and exciting jobs have been advertised in the oil and gas industry in Northern Norway. The contracts also prove that the supplies industry in the far north is competitive and provides top-quality services.

Input to the debate
The government is currently updating the management plan for the Barents Sea – Lofoten area. Earlier this autumn Statoil submitted its statement in the consultation process, which concluded that there is now a good factual basis available regarding the environment and risk to start preparing an impact assessment of the area.

“We hope that the material we are currently presenting is included in this important discussion,” says Norheim. “As Norway’s leading industrial company we are responsible for providing our expertise in this important issue to enable the politicians to make a decision based on the best possible facts.”