PETROLEUM MINISTER SEEKS CLOSER BILATERAL

UNCLAS OSLO 000189 SIPDIS SENSITIVE STATE FOR EUR/NB DALLAND; EB/ESC/IEC GALLOGLY, RGARVERICK, FDOWDY; NEA/I MAMITRANO DOE FOR U/S GARMAN, PI FOR DPUMPHREY, ZHADDAD, FE FOR EROSSI, JSLUTZ, GDEHORATIIS, JSWIFT; LEKIMOFF E.O. 12958: N/A TAGS: ENRG EPET PREL PGOV NO SUBJECT: PETROLEUM MINISTER SEEKS CLOSER BILATERAL COOPERATION ON HIGH NORTH, OTHER ENERGY ISSUES REF: A) 2005 OSLO 1796 B) 12/14/05 AMITRANO-APOSTOL E-MAIL C) 2/15/06 GALLOGLY-APOSTOL E-MAIL ¶1. (U) This is an action request. Please see paragraph 4. Petroleum Ministry Wants Closer Bilateral Dialogue -------------- -------------- ¶2. (SBU) In the Ambassador's February 15 introductory call on Norwegian Minister of Petroleum and Energy Odd Roger Enoksen, Enoksen emphasized the importance Norway placed on closer bilateral cooperation on energy issues. Enoksen said he hoped to visit the United States at the earliest opportunity, perhaps for a United Nations' sustainable development conference in May. He added that the Ministry was seeking to organize meetings with U.S. energy officials in Oslo to strengthen our bilateral energy dialogue. Priority areas would include High North energy, energy security, Norwegian LNG sales to the United States and Europe, assistance to developing nations (including Iraq) to improve petroleum sector management, and joint research and development in new technologies (e.g. hydrogen energy and carbon dioxide capture). The Ambassador agreed that strengthening bilateral energy ties was a top priority and offered to assist in arranging meetings between Enoksen and Ministry officials and U.S. counterparts. Next Steps for High North Energy Development -------------- ¶3. (SBU) Touching on High North energy, Enoksen assured the Ambassador that the government's "Total Management Plan" for the Barents would be published, as scheduled, at the end of March. The document will include the government's comprehensive plans for exploiting Barents Sea energy resources and provide a basis for awarding Barents acreage to bidders in the 19th petroleum licensing round. Enoksen thought that, given the lead times in gathering and evaluating technical seismic data, exploratory drilling in awarded acreage should commence by 2008 or 2009. Enoksen pointed out that although only two of more than 60 wells drilled in the Norwegian Barents had resulted in commercial finds, the relatively unexplored area was twice the size of the North Sea production zone, where more than 1,000 wells had been drilled. Enoksen stressed that the Barents region, with significant resources on both the Norwegian and Russian sides of the border, could become a major energy supplier to the United States, beginning when the Statoil's Snoehvit natural gas project comes on line next year. ¶4. (SBU) ACTION REQUEST. Post fully supports the Petroleum Minister's call for closer bilateral energy cooperation and understands that Washington agencies are agreeable to holding energy talks in Oslo this year (refs). Post requests further guidance on possible timing and priority agenda items for such talks. WHITNEY UNCLASSIFIED SIPDIS NNNN