Norway's Oil & Gas Watchdog to Review Major Projects

Norway's Minister for Petroleum and Energy Ola Borten Moe has ordered a review of several major projects in Norway following difficulties with an oil platform last year.

In a statement released yesterday, the minister said that he was aiming to reduce the chances of repeat incidents with the request. The review will be condcted by Norway's regulator for the oil and gas industry. 

"Recently, we have experienced considerable problems in certain projects on the Norwegian Continental Shelf, including Yme," Minister Borten Moe said. "Accordingly, I have today asked the Norwegian Petroleum Directorate (NPD) to undertake a review of some of the major development projects completed on the Norwegian Continental Shelf. My aim is to help improve the transfer of experience between licensees and reduce the risk of repeating mistakes."

The NPD will now review any large development projects that have started in the recent past as well as those scheduled to begin production soon, which had development plans approved between the years of 2006 and 2008. The review will apply to all projects valued at NOK 10 billion (€1.33 billion) or more.  

Once the review is completed, the Ministry of Petroleum and Energy will consider whether any changes to the current guidelines on the plan for development and operation are necessary.

A high-profile incident in July 2012 shunted regulations in Norway into the spotlight. That was when Canadian explorer Talisman Energy was forced to evacuate 120 staff from a platform at the Yme oil field after cracks were discovered in the grouting of the platform, a fault Talisman believed could lead to a collapse of the platform in harsh winter weather. 

On Tuesday, Talisman and oil services company SBM Offshore reached a settlement on the faulty platform. SBM will pay Talisman $470 million. All joint activity between the two companies will be ceased and the above surface structure of the platform will now be scrapped.