Required organisation in Norway

The player's ability to follow up their commitment on the Norwegian shelf depends on both their organisations in Norway and the resources that are available to the Norwegian company, e.g. from a parent company

Through its organisation in Norway, the player will be part of the Norwegian professional community and can thus both contribute to and draw upon the unique knowledge of the Norwegian continental shelf developed by the petroleum milieu in Norway through 40 years of activity on the shelf.

Therefore, Section 10-2 of the (Norwegian) Petroleum Act stipulates the requirement that companies must establish an organisation in Norway.  This organisation must possess competence in the fields of resource management and HES.  It is up to the individual company to ensure that the Norwegian organisation always has the expertise and capacity needed to handle tasks and obligations linked to activities and phases in the relevant licences on the Norwegian shelf.

It is a precondition that the personnel in Norway possess technical competence in the following disciplines: geology/geophysics/reservoir technology/production technology/other relevant technology.  The distribution of expertise among the various technical disciplines will depend on the phases of the production licence(s).

Experience to date shows that players that have established themselves on the Norwegian shelf have built up an organisation consisting of at least 8-9 persons with technical and HES expertise, in order to  safeguard their obligations as a licensee in Norway.

The normal procedure in a pre-qualification process for players that have not acquired interests in production licenses is that the authorities will request a scenario-based plan for development of an organisation in Norway.

The authorities are interested in ensuring that new players build up a certain portfolio in Norway.  Based on the changes in licence award policy (such as the introduction of annual awards in mature areas), companies should be able to develop a commitment during the course of one year.  The authorities will normally expect  new players  to develop an organisation as described above within 12 months from a swap or award of the first participating interest in a production licence.