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Norway offers Kenya to help with oil exploration

19-09-03 The Norwegian government is ready to help Kenya explore its oil potential, if requested. The State Secretary (deputy minister) for Oil and Energy, Ms Brit Skjelbred, told that her country was willing to assist Kenya explore, excavate and even manage its potential oil deposits if it was comfortable with the arrangement.
She said that oil exploration was a tricky and costly affair, and Kenya must ensure that it was not cheated out of its natural wealth by unscrupulous countries or companies. The minister said Norway, a leading exporter of crude oil, had assisted many countries to produce and manage their oil without any problems.

With its latest technology, Norway had assisted Canada, Brazil, China, Nigeria, Angola, Venezuela, Malaysia, Iran and Indonesia, among other countries realise their dream of extracting oil, she said.

"Like Norway, Kenya must own its oil deposits and any private companies that seek to extract the oil must be licensed competitively and according to world standards,"she said in her office. "Kenya must be careful that its wealth remains national wealth to be managed for the welfare of Kenyans and not be reaped by others," she advised. She said that Kenyans must be involved in the discussions about the exploration and impact assessment studies must be beyond reproach.

Ms Skjelbred said Norway, which is the world's sixth largest oil producer, manages its oil through two government companies -- Statoil established in 1972 and Petoro, set up in May 2001. The government controls 80 % of Statoil shares. Its objectives are to carry out exploration, production, transport, refining and marketing of petroleum products. Petoro AS is responsible for administering and managing Norway's direct financial interests.

Norway discovered oil deposits along its coastlines in 1969 and started excavating it in 1970. Today, the country produces 3 mm bpd. It is the fourth richest democracy in the world, with a reserve fund from oil totalling NOK 750 bn (Sh 7.5 tn). On average, oil accountsfor about NOK 250 bn (Sh 2.5 tn) in revenue annually. This is about 32 % of the country's total income.

This surplus fund is only injected into the national budget gradually but not without the approval of Parliament. "We don't want to pump it into the economy at once. We are looking at it like a pension fund of sorts and for the elderly," said the minister. She said that although the surplus is not defined as such, it is meant to take care of the country's welfare scheme, health system and as a pension for the old. The country expects to continue harvesting oil from its deposits for another 50 years and natural gases for another 100 years.

The country has an export market share of 12 % and this is expected to increase. Last year, the oil sector made up 19 % of Norway's gross domestic product. The minister says that of great importance in the excavation is the preservation of the environment.

Source: AllAfrica.com

http://www.gasandoil.com/goc/news/nta34233.htm
 

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