Reporting of finalised negotiations concerning third parties’ use of facilities
The Ministry of Petroleum and Energy on the 20.12. 2005 adopted the Regulations regarding third parties’ use of facilities, in force since 1st January 2006.
The objective is to achieve an efficient use of existing platforms and pipelines in order to ensure a higher level of prospecting for and production of petroleum on the Norwegian Continental Shelf. This is of particular importance in mature areas.
According to Section 14 of the Regulations the parties shall, within 30 days of receiving the Ministry’s approval of an agreement relating to third parties’ use of facilities pursuant to Section 4-8 of the Petroleum Act, report elements of the negotiations process and the most important terms of the agreement to the Petroleum Directorate for publication. In a letter dated 6.9. 2006 the Ministry of Petroleum and Energy declared that it deems it unnecessary to approve agreements negotiated pursuant to the Regulations. However, a signed original of the final agreements shall be submitted to the Ministry of petroleum and energy for evaluation.
In a letter dated 15.02.2007 therefore, the NPD requested that the report to the MPE pursuant to Section 14 shall be submitted simultaneously with the submitting of a signed original to be evaluated by the Ministry.
The report shall be made on a form developed by the Ministry.
Standardised contract clauses
The Ministry of Petroleum and Energy laid down the Regulations relating to the use of facilities by others on 20 December 2005. They entered into force on 1 January 2006. The objective of these Regulations is to achieve efficient use of existing platforms and pipelines in order to ensure more exploration and production activities on the Norwegian continental shelf. This is particularly important in mature areas.
Pursuant to Section 10 of the Regulations relating to Standardised contract clauses, and following a consultation process with the industry (Norwegian only), the Ministry approved a set of recommended standardised contract clauses in June 2006, for use in negotiations on the use of facilities by others.
As mentioned in the consultation letter, the licensees are free to decide whether or not they wish to use these contract clauses. The Ministry has, however, requested that the contract clauses should be employed in instances where such use will contribute to fulfilling the objective of the Regulations, i.e. the efficient use of installations.
Download: Standardised contract clauses