Cooperating Country Report of NORWAY

Transcription

1 CCOP-41AS/ st CCOP Annual Session November 2004 Tsukuba, Japan Coordinating Committee for Geoscience Programmes in East and Southeast Asia (CCOP) Cooperating Country Report of NORWAY Submitted by Erling Kvadsheim Norwegian Petroleum Directorate Norway (For Agenda Item 6.1)

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3 COORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP) 24 th Floor, Suite , Thai CC Tower, 889 Sathorn Tai Road, Sathorn, Bangkok 10120, Thailand. Tel: (66) , Fax: (66) , Website: ANNUAL COOPERATING COUNTRY REPORT Country: NORWAY Period: 1 July June Summary This has been another active year in the cooperation between CCOP and Norway, with the main activity being the PPM Project. There has also been significant activity on bilateral projects with CCOP member countries and with other countries in the region, in addition to Petrad activities (reported separately). 2. Review of current technical activities and geoscience programs in the CCOP Region (Multilateral or Bilateral) a. Petroleum Policy and Management (PPM) PPM is a four-year project run through CCOP for its member countries. The total budget is 19.6 million NOK (approx. 2.6 million US$) funded from Norway. The project commenced on 1 st July 2002 and will run until June The main activities in this project are built on four case studies in Cambodia, China, Indonesia and Philippines. The goal of the PPM Project is to enable government organisations responsible for petroleum resource management in the CCOP Member Countries to: Establish a sustainable and efficient national petroleum management and policy, Envisage the mechanism and importance in revising and improving their petroleum management and policy arrangements due to changes in political, economic and marked conditions, Enhance their capacity and capability in petroleum resource management based upon a realistic assessment of their own petroleum potentials utilising national data. NPD provided the project coordinator for the two first years of the Project. Mr. Gunnar V. Søiland coordinated the project at the CCOP T/S from until Mr. Sim Caluyong from the Philippines has now taken over full coordination responsibility for the remainder of the project period. 10 workshops, 3 Seminars and 7 Expert visits have been conducted so far. A key aspect for PPM is to utilise competence - and human resource sharing within the CCOP region. A number of Experts from China, Indonesia, Korea, Malaysia, Philippines, Thailand and Vietnam have lectured and guided the group exercises during the workshops. In addition, private consultants from the United States, Norway and the Philippines have been hired for specific expert visits to the case study host organisations, CNPA in Cambodia, DOE in the Philippines and Sinopec in China. The topics for these visits have included Basic Petroleum Geology, Petroleum Economics and Gas Field Developments in Tight-sand. NPD have provided technical assistance and participated with recourse persons on several PPM 41 st CCOP Cooperating Country Report: NORWAY 1

4 activities. Items covered by NPD have been Recourse assessment of Basins/Plays/Prospects, Petroleum Economics, Fiscal Regimes and Marginal Field Developments. For the reporting year (July 2003 June 2004), NPD have participated with resource persons in two workshops in Chengdu, China and at the 2 nd PPM seminar in Pattaya, Thailand. The Norwegian funding agency, NORAD, called for a mid-term Project review of PPM. This was undertaken by two independent consultants, Mr. Ole F. Ekern from Norway and Mr. Leong Khee Meng from Malaysia in July/August b. Vietnam Total Resource Assessment Project, Phase II (VITRA II) The project is based on an institutional cooperation agreement between PetroVietnam and NPD. The VITRA II goal is to ensure that the Vietnamese Authorities who deal with the management of energy resources have a comprehensive knowledge of the total petroleum resources of the country, and that they continue to use this knowledge at management/policy level for overall strategic planning for the further development of the energy sector. During this second year of the project focus has been on the preparation and implementation of the new resource inventory database in PetroVietnam. Two workshops have been held in Vietnam regarding data management and on regulations and guidelines for reporting of resource data. Groups from the Core Working Team visited Norway on a two weeks on-the-job training on resource inventory systems, and for a workshop focusing on work processes for reporting and quality control of resource data. The institutional cooperation has been extensively used for transfer of experience and knowledge. The project started late 2002 with a budget of 1.2 million USD. c. Vietnam Safety and Environmental Management Project, Phase II The project is a joint activity, comprising the Norwegian Petroleum Directorate (NPD) and the State Pollution Control Agency (SFT). After the formal conclusion of phase I of the project in 1999, phase II was approved and new institutional contracts between SFT/NPD and PetroVietnam established in Main activities in phase II are: Development of HSE management system for PetroVietnam. Industry implementation of Safety Management Regulation and Technical Guidelines. Continuation of work related to oil spill contingency and mapping of natural resources. Competence and capacity building related to HSE and HSE supervision. In 2003 and 2004 there has been a continued progress with regard to development of HSE management system for PetroVietnam. Several activities have been performed, including seminars and meetings both in Norway and in Vietnam. d. Study on Private Sector Development and Business Opportunities for Norwegian Industry and Trade in Vietnam, April/May 2004 The study represented the second stage of a NORAD two-phased study in Vietnam which is part of the Norwegian government s strategy on Private Sector Development. The 2 41 st CCOP Cooperating Country Report: NORWAY

5 study was co-ordinated by the Confederation of Norwegian Business and Industry (NHO) on behalf of NORAD. A team of experts visited Vietnam during April The objective of the effort is to identify areas where commercial cooperation may meet Vietnam s development requirements. As such this initiative complements the bilateral assistance to Vietnam on Resource Assessment and Safety/Environment. e. Philippine Petroleum Exploration Promotion (PhilPRO) The PhilPRO project started up in January 2003 as a continuation of the Philippine Petroleum resource Assessment project (PhilPRA). Under this project a basis for an exploration strategy had been laid, and through an extensive discussion in the PhilPRO team it was decided to use a licensing round as the main vehicle for promotion of the most attractive acreage offshore The plans for the first Philippine Petroleum Public Contracting round (PCR-1) and the actual promotion were made under the auspices of PhilPRO. The project was carried out by the Philippine Department of Energy assisted by the Norwegian consultancy company The Bridge Group AS. The project finished in July As a contracting round represents a major shift from the long established method of granting exploration contracts through first come first served basis, considerable efforts were exerted to put the round system in place within the time frame of the project. Part of the preparation for the round was the holding of seminars and workshops to develop the skills of the DOE in presentation, petroleum economics, management and negotiations, in addition to the preparation of the promotional materials used throughout the promotion campaign. The PCR-1 opened on 5 August In all, 46 offshore blocks located in Northwest Palawan and Sulu Sea was offered. Companies were given until March 2004 to evaluate the data for these blocks which were made available through a physical data room in Manila and virtual data rooms in London, Houston, Stavanger, Perth and Manila. The PCR-1 was also presented in Singapore during the SEAPEX 2003 Conference. The DOE promotion team also held several meetings with oil companies. Eventually, four international companies applied as a group for two blocks in the Sulu Sea. 3. Proposed future activities and assistance to CCOP in support to current and future activities a. Delineation of the outer limits of the continental shelf NPD and CCOP has been preparing an application to Norwegian authorities for support and financing of a series of workshops and desktop studies on delineation of the outer limits of the continental shelves of the CCOP Member Countries. According to Article 76 of the United Nations Convention on the Law of the Sea (UNCLOS) a coastal state may establish the outer limits of its juridical continental shelf wherever the continental margin extends beyond 200 nautical miles. Such a claim has to be filed within a predefined number of years. 41 st CCOP Cooperating Country Report: NORWAY 3

6 The goals of the proposed project are to enable the Member Countries to perform the necessary work for establishing the outer limits of the continental shelf and also to enhance the friendly relations between the CCOP Member Countries and other countries in the South China Sea region. It will be organized as a series of workshops for all interested Member Countries followed by desktop studies in individual countries. It is intended to start in The project is likely to be organized as cooperation between CCOP and a new data centre under the UN Environmental Program (UNEP) in Arendal, Norway. The UNEP data centre has specialized on the data requirements for continental shelf delineation and on running of desktop studies in individual countries on the practical aspects of this work. Malaysia has generously offered to make available facilities for the workshops in Kuala Lumpur. It has so far proven difficult to secure full financing of this work from Norwegian authorities. A combined financing should be considered, with contribution from Member Countries, applications from individual Member Countries to a designated UN fund for work in connection with UNCLOS and contribution from Norwegian authorities through the UNEP data centre in Arendal. 4. Reports/publications of technical activities for dissemination to CCOP Member Countries including contributions to GRID-Net None 5. Others a. Relevant NORAD/NPD activities in non-member countries in the region Assistance in developing the management of the petroleum sector in Timor-Leste The objective of the project is to provide institutional cooperation between the Norwegian Petroleum Directorate and the Ministry of Development and Environment and associated institutions in Timor-Leste performing petroleum sector management functions, such that the Norwegian experience of developing a public sector petroleum administration can benefit the country, and such that NPD s technical expertise and other Norwegian and international expertise can be utilized in developing a well-functioning petroleum administration in Timor-Leste. The project period is six years at an estimated cost of 4.2 million USD. The project started in It comprises several resident and no-resident advisors, seminars, workshops and a large training and education program. Strengthening of the Hydrocarbon Unit in the Ministry of Energy and Mineral Resources, Bangladesh The objective of the project is to address the need for the Ministry to assume new responsibilities in developing and conducting a sound petroleum resource management of Bangladesh, by building and strengthening the Hydrocarbon Unit to become a full-fledged functioning, permanent body in the ministry, authorized to implement government policies and regulations for upstream activities in the petroleum sector and to promote and supervise private sector activities in the petroleum sector. The project was started in 1997 and is expected to finish at the end of The total budget is approx. 2 million USD st CCOP Cooperating Country Report: NORWAY