UK/Norway Oil and Gas Co-operation Treaty

On 4th April 2005, UK and Norwegian Energy Ministers signed the UK/Norway Oil and Gas Co-operation Treaty. The treaty removes the need for negotiating separate (and time-consuming) treaties for specific projects in the North Sea and paves the way for unprecedented co-operation on North Sea oil and gas projects between the two States.

The new treaty covers:

  • the construction of a new pipeline to the UK capable of delivering gas from Norway's new Ormen Lange field and other Norwegian fields to Easington in Yorkshire. Langeled South will be operational for the winter of 2006/2007
  • the development of any future oil and gas reservoirs which straddle the maritime boundary
  • the use of infrastructure on one continental shelf (eg a platform) to develop a reservoir across the boundary

There is already tangible evidence that the process of co-operation is working.  During the negotiations on the new treaty in 2004, an innovative approach was adopted by the two Governments and the commercial participants concerned to enable two small oil fields, Playfair and Boa (with small extensions across the continental shelf boundary) to be developed by the licensees of the State with the majority interest. Since the treaty was signed, two trans-boundary developments, Enoch and Blane, have already been approved by the two Governments.