Open dialogue with the Norwegian Fishermen’s Association

This article originates from the news archive of Det norske.

30. May 2008

Following a meeting with the Norwegian Fishermen’s Association held this week, the Norwegian Fishermen’s Association and Det norske have agreed to hold frequent meetings to clarify potential conflicts that may arise between fishing interests and the company’s activities.

The Norwegian Fishermen’s Association was represented by Chairman Reidar Nilsen and General Secretary Jan Skjervø. During the meeting, the participants addressed essential issues such as seismology, Lofoten, and the Barents Sea. Det norske has no seismic activity this year that may conflict with the interests of the fishing industry. The company will contact the Norwegian Fishermen’s Association if activities are planned for areas deemed conflicting by the association.

Det norske does not have shares in blocks located close to the coast that may conflict with other interests. As a matter of policy, the company will not enter into areas where conflicts exist, when these are professionally justified and documented.

Det norske and the Norwegian Fishermen’s Association have also agreed that there are no fishery-related reasons preventing an increase of oil activities in the Barents Sea. Det norske will be actively engaged in the country’s new petroleum province, and the company also requests that the northern Barents Sea be opened for oil activities.

As stated previously by Det norske, the entire shelf north of Lofoten must be subjected to an overall assessment, and the interests of the fishing industry, the oil industry, and environmental considerations must be balanced. In Det norske’s opinion, increased activity in the Barents Sea is pivotal to Norway’s future as an oil-producing country.

CEO Erik Haugane says that Det norske places great emphasis on maintaining an open dialogue with the two major coastal industries.

– It is in our common interest that we recover the resources located off the coast in an efficient and environmentally sound manner.

Ensure Diversity

Det norske has also arranged meetings with Siv Jensen, the Chairperson of the Progress Party (Fremskrittspartiet), and Gunnar Kvassheim (Venstre), Chairman of the Standing Committee on Finance and Economic Affairs in the Norwegian Parliament (Storting) this week. In addition, meetings have been held with members of Parliament representing both Trøndelag counties.

In these meetings, Det norske has emphasized the importance of maintaining a variety of participants on the Norwegian Shelf, particularly with regard to operatorships. With reference to society at large, and not in the least where the supplier industry is concerned, the presence of other, strong players beyond StatoilHydro is of vital importance.

Chairman Reidar Nilsen and General Secretary Jan Skjervø from the Norwegian Fishermen's Association and CEO of Det norske, Erik Haugane. Foto: Jørn Adde

Chairman Reidar Nilsen and General Secretary Jan Skjervø from the Norwegian Fishermen’s Association and CEO of Det norske, Erik Haugane. Foto: Jørn Adde

As the oil company with the second-highest number of operatorships, Det norske is in the process of becoming such a player. Det norske requests that the taxation rules be amended, so that the costs may be deducted during the development period, similar to allowances being made for exploration costs.

In addition, Det norske asserts that the present norm price system  is detrimental to an increasing number of participants on the Norwegian Shelf.

At the same time, CEO Erik Haugane emphasizes that the company fully supports the main features of the present taxation of the oil industry.

-The State is our employer. Allowing a higher number of participants on the Norwegian Shelf has proved to be a success. As a consequence, more oil and gas discoveries are made, and the resources in smaller fields are also utilized. If the smaller players are to pursue projects to the stage of development and operation, we are dependent upon the tax rules applicable during the development phase being amended. This will prove beneficial to society when production starts generating revenue.

Again, Det norske underlined the importance of increased activity in the Barents Sea, also in the northern areas, during the meetings with the politicians.

About Det norske:
Det norske is the second-largest operating company on the Norwegian Continental Shelf with 23 operatorships and interests in a total of 44 licenses. In 2007, the company drilled five exploration wells. Det norske`s scope of activities is limited to the Norwegian Continental Shelf (NCS).

Det norske currently employs a staff of more than 100, and the strong growth rate is expected to continue in 2008. The company`s registered office is located in Trondheim. Headquarter functions are divided between Oslo and Trondheim. The company also has offices in Harstad and Stavanger.

Det norske oljeselskap (`DETNOR`) emerged as a result of the combination between Pertra and DNO`s Norwegian operations. At the end of January 2008, the market capitalization of the company amounted to NOK 3.5 billion.