Inside Business Africa INSIDE BUSINESS AFRICA AUGUST 16 2017 1cdr - Page 13

I N S I D E B U S I N E S S A F R I C A Maritime Report July 16 - 30, 2017 I N S I D E B U S I N E S S A F R I C A Africa Report July 30 - August 13, 2017 The hidden treasure 2014, and the entire industry employs almost 200,000 workers. Dream of $65 billion hidden off Norway is fading away N orway's oil industry has been salivating for years over the Arctic Lofoten islands, which could hold billions of barrels of crude. It will likely have to keep dreaming. The general election next month is unlikely to lift a deadlock that's keeping a ban on drilling off the environmentally sensitive archipelago as more and more Norwegians are turning their backs on the industry that helped make the country one of the world's richest. "It's a dead issue," said Frank Aarebrot, a professor of political science at the University of Bergen. Backed by unions and business, Norway's two biggest parties, Labor and the Conservatives, have long favored steps that could open up the area for exploration. But so far they have had to compromise with smaller parties that are determined to keep Lofoten oil-free. That's because the area is a natural wonder. The waters off the rugged archipelago are home to the world's biggest cold-water coral reef and a breeding area for 70% of all fish caught in the Norwegian and Barents seas, according to WWF. The islands also host mainland Europe's biggest seabird colony. Opponents of oil exploration argue a spill could cause catastrophic harm and that Norway will run afoul of the Paris climate agreement if it expands exploration more. Oil companies led by state-controlled Statoil ASA, the biggest Norwegian producer, say gaining access is key if the country wants to maintain production of oil and gas, which is forecast to fall again from 2025 after already dropping 12% since a 2004 peak. While the government estimates Lofoten could hold about 1.3 Bboe, industry group Konkraft has said resources could top 3 Bbbl. If it's all crude rather than gas, that would represent at least $65 billion in sales value at current prices. "We're dependent on making new discoveries to have new projects in that time-frame," Statoil spokesman Bard Glad Pedersen said by phone. "That also underlines the urgency in an impact assessment for Lofoten and Vesteraalen." 36 u t q PGS, CEO Statoil chairman The debate over Lofoten frame 2vFW"F67W76'vfW"v@&RvW7FW&WW&Rw2&vvW7BBv0&GV6W"v67F'FVBVr7'VFPFRs26VBFRFRfv@v7B6ƖFR6vR6RCBR`'vVv2vVB&RvƖrFVfP6RFRw&VBbBV27W@V֗76266&FrF62FRF2Ff"Fv&FWBFRVW7F26vWFW"FW&Rv7GVǒ&RVVBf"FR&Vw2VFV@7'VFR2&6W2f"&VWv&RVW&wG&B&GV6W'2g&W&6'FT2RFV"f&V67G0f"VV7G&26"6W2&r27F'FV@Fƶr&WB7'VFRFVBVr0V&ǒ2WBFV6FRvR&F&R֖7FW"W&6&W&rBW"&fg&&"0v"7F&R6'vVVG2F&V6PW72&VƖBFW6FF@WG&WV&GV7Fv6FVRF&r'Bf"V'2VB&GV7FR7F66VG2f"&W@"RbFRV6גFvg&&PF#R&Vf&R&6W27&6VB6W2VB'7FFRЦ6G&VB7FF4FR&vvW7@'vVv&GV6W"6vp66W722WbFR6VG'vG2FF&GV7FbBv2v62f&V67BFfvg&У##RgFW"&VGG&r"P66R#BV2P@FR6&֗6P66VFBVG27V62FRw&VV'Gv626WBFv&R6VG0&ƖVBWBF@Vf&VFw&W26'vVVG0F7F'BF6RWBG2GW7G'&wVrFB&R&GV7FvVB&R'&V6FG26֗FVG2VFW"FP&26ƖFR66&Bw&VVV6R27VpFR6VG'FvWBBF7FW&rFR&&VG26Vfb'vw2'FW&Fख6vFBVG2bG&Ɩr&PvrG&7F&"&6&֗6R"V&ƖW"F2V"6B@vVBǒ6VVF7F'B7B7GVGRbFRF&VR&V2FW6vFVB0FVF&62fbfFV'WBWfV7V626fR26VB'FP6VFW"'GBFR66Ɨ7BVgB'GG2FVF'VƖr'FW'2gFW"FR6WBfFR26r7V66ƗFvV@v6V"&GWfVGW7G'g&VFǒƗF627V6&'FVRFWWGVFW"bFP6VFW"'G62FW&Rw2VVBFW6FfFV%FW&Rw2&RFVVvvB7&VvRf&R"R6BখFW'fWr'WBFRf&W"֖7FW"vv0vVƖVBFRGW7G'7FVB6'@b&W6VFr&"vFVFGV6G&'FFR66Ɨ7BVgBv662@vwBVBG27W'BFvfW&V@FBw27FfGfbfFV%vRv7VBƗF66FF2 &VƗ6&WF6V&W"bFP'Gw2vfW&r&G6BখFW'fWr$Bw2'FB7&Ɩ077VR FR&ƖVF'6GVF2fVB@&"6VBFVFǒ6VV7W'BFf&6ƗFg&FR6&7FFV7&G2BFRƖ&W&'GGv6VG&7Bw&W2FB7W'&VFǒ7W'BFP66W'fFfRVBvfW&VB'WBFW66R7B7GVGvfW&VB'V'&""FP66W'fFfW2vVBF7F&PFW&2f"FRGW7G'6VFrFW0B7&VvRv&G2WfVb6WfW&6W"'FW2&RW6rf"fW&Vb'vw2VW&wƖ7FR&6Rf"FBvV&RF@fFV2VgBRf&WfW