Please find a copy of the cross-border agreement on petroleum co-operation between the UK and Norway and make sure

that you understand the key aspects. (a) Highlight the strengths and weaknesses of this arrangement. (b) Do you think this type of arrangement could be used as guidance by developing countries with cross boundary petroleum deposits?
The cross-border agreement on co-operation between the UK and Norway had very specific aims, The express aim of the Agreement is to deepen further the cooperation between the UK and Norway with respect to petroleum cross-boundary projects and to achieve optimal exploitation of the petroleum resources on the continental shelves appertaining to the two States. 1 drafted on the basis of the recommendation provided by the Pilot-Konkraft report of August 2002.2

Mindful of the initiative taken by Energy Ministers at the end of 2001 and the Pilot-Konkraft recommendations made in August 2002 in their report Unlocking Value Through Closer Relationships to strengthen co-operation between the Kingdom of Norway and the United Kingdom in petroleum developments across the continental shelves appertaining to the two States;3 The recommendations that were made in this report highlighted the strengths that would be achieved through its implementation in a formal agreement, briefly these were: To formalise, deepen co-operation and facilitate improvements in safety. Governments to support freedom of movement of all hydrocarbons across the median line in order to maximize value creation on the principle of best available commercial solution. To facilitate cross-border opportunities which recognise Norways supply and UK demand-side drivers. Industry to promote the required investment in the National Transmission System (NTS), to ensure sufficient capacity and to reduce the uncertainty of cost and availability of NTS capacity. This will provide greater confidence for Norwegian producers and benefit UK security of supply. Promote the need for improved compatibility of UK, Norwegian and continental gas sales specifications by dialogue between respective Ministries and stakeholders.

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Pilot- Konkraft Report Agrrement

Establish a mechanism to manage efficiently the UK and Norwegian environmental impact assessment and approval processes since they affect cross-border developments. Expand the range of opportunities available to the UK and Norway Supply Chains through delivering Mutual Share Fairs, cross-border Business-to-Business Mentoring and seminars. Simplify the processes to give mutual access to the UK and Norwegian markets by creating guidelines to advise the Supply Chain on regulatory compliance. Work to improve mutual open market access across the North Sea by creating a single pre-qualification system for UK and Norwegian contracts and an integrated business directory of suppliers for the UK and Norway.