UK-Norway Co-operation Implementation Group

15th November 2002

Minutes

Actions

1Norske Shell to nominate leader for Gas & Infrastructure Group

2Group Leaders to nominate group members by 20/11/02

3MPE will confirm Supply Chain Leader

4EAG and Norwegian Economists to design a monitoring model

5Meeting Dates – Secretariat to identify and confirm

  • Early Jan (UK)
  • Late Feb (Norway)
  • Late March/April (UK)
  • May/June (Norway)

6Letter to Industry and Stakeholders; explaining Implementation Group and encouraging involvement. Letter to include:

  • Implementation Group Chart
  • Terms of Reference, with deliverables and milestones
  • Secretariat to action by 27th November

7The Secretariat will devise a project plan for all Implementation Group activities

8Norway side to decide where OLF fits on Implementation Group

9Change mandate on delivery of Guidelines to June 2003

10Consultation Group to combine TOR into single document

11Johan Nic Vold will identify a Gassco contact for R8

12Johan Nic Vold /Henrik Carlsen with Torstein D Sjotveit to consider set-up of Safety Forum in Norway with OLF

13Implementation Group members confirmed their commitment to participate at the Norwegian and UK Supply Chain Share Fair events

14DTI, MPE, and KON-KRAFT Secretariat to work-up draft agenda for joint PILOT/KON-KRAFT meeting in 2003

Key Messages

  • $2bn of New Value
  • Ministerial mandate
  • Co-operation enables efficiencies
  • Government and industry in partnership
  • 14 key recommendations
  • Groundbreaking Framework Treaty
  • Safety Co-operation
  • Sharing Cross-border Practice
  • Open and Transparent market place

Implementation Group

The following changes were proposed to the draft Implementation Group chart tabled:

  • Consultation Group
  • UK lead – Simon Bennett
  • Norway – Per Torfinn Knudsen
  • Gas and Infrastructure Issues Group
  • Move R11 from The Consultation Group to
  • Gas and Infrastructure Issues Group should will also consider oil issues
  • Pierre Leffant will be replaced by Johan Nic Vold to avoid a double sponsorship by TFE
  • UK lead – Phil Shute
  • Norway – contact from Norske Shell
  • Supply chain group
  • Norway: Intsok and MPE will be involved with MPE leading Group
  • UK: DTI lead with industry support and operator involvement

The chart will be revised and updated to include all members of the Work Groups. A letter will be issued to industry informing them of the new Implementation Group and inviting participation – similar to the letter issued by the Workgroup.

Terms of Reference

The Terms of Reference were broadly accepted with the need to include reference to monitoring and measurement. It will be for the UK’s EAG and Norwegian economists to design model in co-ordination with the Secretariat.

Future Meetings

The Secretariat will identify availability for 2003 in:

  • Early Jan (UK)
  • Late Feb (Norway)
  • Late March/April (UK/Norway)
  • May/June (Norway/UK)

Future events which the Implementation Group needs to be aware of are:

  • Sanderstolen: 5-8 Feb 2003
  • Brian Wilson and Einaar Steensnaes meeting in Shetland: March 2003
  • Offshore Europe 2003 (Aberdeen): 2-5 September 2003

It was agreed that a Report update would be appropriate at Offshore Europe when most of the current recommendations should have been actioned and any further activities could be described.

Deliverables Timelines

From the draft recommendations programme plan, the following amendments were proposed:

R1)Extend to ongoing

R4)Change to March to reach agreement

R5)Change to June for delivery of Guidelines

R7)Extend to Q1 2003

R8)Extend to Q1 2003

R10)Change to ongoing

Once further data is available from the Work Groups, a full programme plan will be drawn-up.

Additional Work Areas

It was recognized that the scope of the Workgroup phase was limited to the key areas with the greatest impact on closer co-operation. However, it is recognized that other areas may be considered in the Implementation phase. The following new areas were discussed:

  • Technology – due to resource constraints, it was agreed to delay consideration of co-operative action till March 2003
  • CO2 Sequestration – effort is already ongoing between the UK and Norway. DTI/FCO and MPE will discuss and agree if areas should fall under the Implementation Group
  • Rigs – Common issues exist such as the drop in activity levels, current and future availability and differing certification and safety course procedures. It was agreed to delay further work until March 2003

Action teams

Treaty Group

Good progress on broad principle of content and draft texts, based on existing treaties will be shared with the Consultation Group soon. Jurisdiction will be a key issue and formal talks are now underway with all relevant parties on both sides of the median line – initiated on 15 November 2002. No other issues are foreseen through the formal stage. It is anticipated that by March 2003, the broad principles and agreed text should be available pending procedural protocols.

Consultation Group

The first meeting of the UK and Norway Groups have been held. Members must now be confirmed and the mandates/terms of reference confirmed. Consideration will be given to whether there should be one ToR, which should recognize that support on each side to their respective governments will be distinct but that the guidelines should be a single document.

Gas and Infrastructure

This Group is under formation and the Norwegian group leader will be identified soon. Two of the recommendations falling to this Group are UK-oriented but may require support from Norway, particularly from Gassco on infrastructure issues – Johan Nic Vold will identify a contact in Gassco.

Liaison with the Treaty Group will be made in pursuance of R11 – common infrastructure code of practice. At the moment the code has an offshore focus and consideration may be given to the need for an onshore strand.

Once membership of the Group is confirmed, Terms of Reference will be drawn-up.

Tax

This is a UK-only issue and the Inland Revenue is currently considering the recommendation and is expected to write to all interested parties specifying what evidence will be required for the industry’s case for change.

Safety

The UK and Norwegian Groups have met and agreed to focus on crane lifting, dropped objects and standardisation of procedures. The UK’s Step Change in Safety has also recently initiated a Fatality Review to identify the causes of recent losses and seek ways to prevent further fatal incidents. Norwegian companies will also take part in cross border sharing of experiences. With many of the fatal accidents occurring in the drilling sector the International Association of Drilling Contractors (IADC) are also actively involved in this review. There are also plans for a Safety trading day follow-up.

It was noted that the recent fatality on BP’s Gyda platform occurred in similar circumstances to the UK fatality in March. BP immediately released details of the accident in order to ensure that all operators and contractors are aware of the circumstances in which the incident occurred. A formal review is underway and detailed findings will be released in due course. It was noted that the IMCA flash communications system, for anonymous communications of lessons learned on safety incidents, could be expanded for wider use across industry.

In Norway there is a need to review position of OLF and Board

link to safety forum and this will be taken forward by Johan and Tor Sjotveit.

Logistics

Work here will focus on the sharing best practice and particularly of standby vessels and ground aviation facilities. It was noted that, on Norwegian side, ConocoPhillips should be invited to take part in this Group.

Supply Chain

Considerable progress has been made on devising the cross-border Share Fair events. Given the lack of awareness of this type of event in Norway, it is felt that Norway would be the most appropriate venue for the first event. Stavanger week will be held from 31 March till 4 April with 2nd April devoted to oil and gas and the best date for the first Share Fair. [Please note new date.] Implementation Group members agreed to participate in the industry Share fair events. A UK event is likely in May/June 2003.

DTI, Intsok, Trade Partners UK and the British Embassy are planning these events. Looking ahead, it is anticipated that this will be an annual series with one event held in each country each year.

It was noted that a Norwegian mission to the UK is planned from 27/28 November and thanks were extended to host companies – Shell, BP, Wood Group and Subsea 7.

PILOT and KON-KRAFT Liaison

The proposal for a joint event was endorsed by the PILOT and KON-KRAFT boards. It is anticipated that the optimum date would be a meeting at Offshore Europe 2003 which would coincide with the oil show and the quarterly meeting of each board. The Implementation Group will be tasked with setting the agenda for this meeting.

Communications events

A template of known events was tabled and Groups are encouraged to inform the Secretariat of updates which can then be promoted more widely.

Key messages

A template was proposed for use initially at the forthcoming Conference on 28/29 November and at subsequent events. The agreed messages are given on Page 1.

Angela Latta

November 2002

Attendees

Henrik Carlsen (Statoil)Gunnar Gjerde (MPE)

Tom Botts (Shell)Iain Todd (DTI)

John Smith (Halliburton)Scott Urban (BP)

Johan Nic Vold (Norske Shell) Eric Talleraas (Norske Shell)

John Smith (Subsea 7) Michel Contie (TFE)

Svein Roar Engelsen (Statoil)Pierre Offant (TFE Norge)

Kjell Arne Oppeboen (KON-KRAFT)Erik Johnsen (MPE)

Ricky Verrall (DTI)Andrew Hogg (BP)

Ben Taylor (Shell)Halvor Museus (MPE)

Stephen Cartwright (British Embassy)Sverre Sand (MPE)

Angela Latta (DTI)

Apologies

Sir Ian Wood (Wood Group)Torstein D Sjotveit (Norsk-Hydro)

Kjell Erik Drevdal (Prosafe)

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