StatoilHydro and the coming wave of oil and gas development to Northern Norway
Posted by Philip Burgess on November 30th, 2007According to an article in the Financial Times, StatoilHydro plans to have a drilling rig working continuously looking for gas in the area around the Snøhvit development, over the next 18 months, to see if there is justification for the construction of a second LNG line. Eni of Italy, leader of the Goliat project, in which StatoilHydro is a partner, is planning to develop oil reserves off the north coast of Norway, as was evidenced recently by Romano Prodi’s visit to Finnmark two weeks ago after which he visited Moscow. In an interview with the Financial Times, Helge Lund suggested that he wanted Norway to work with Russia on future development of Arctic resources.
“During the next five to 10 years, I think we’ll learn a whole lot, and you can see perhaps an industrial scenario being developed in the Norwegian and the Russian side of the Barents sea that will qualify the industry to work on even more challenging areas,”
Although StatoilHydro is the first company to ship LNG from the Arctic, their plant in Hammerfest has just been closed down for maintenance, and may remain closed for the rest of the year, according to DN.no. The plant has received negative publicity nationally as black smoky emissions from the plant were stated to be carconigenic. Hammerfest is the summer grazing pastures for reindeer from Katuokeino/Guovdageaidnu, inner Finnmark.
Jan Egeland, current Director of NUPI (Norwegian Institute for International Affairs), and former State Secretary to the Norwegian Ministry of Foreign Affairs in an interview on Sami Radio (23 October, 2007), spoke clearly of the threat that rapid oil and gas development will mean to the region’s indigenous people, the Sami:
The threat for indigenous peoples is first and foremost against their culture…The cooperation with Russia has increased. I think we will have economical progress but I think this could increase pressure on the culture, if there will be a new with increased immigration, construction of new buildings, huge bases etc in their traditional areas this means that peoples’ traditional ways of living will be very threatened…. Maybe we can have a Norwegian model that can be used in the North-west Russia which includes more co-determination, more possibility to influence. But when talking about millions of dollars of values, then the economical power usually win over the culture.
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