Chapter 6 Norwegian–Russian political relations and Barents oil and gas developments
Contributors: Overland, Indra; Overland, Indra; Krivorotov, Andrey
Publisher: Taylor & Francis
Published: 2015
Subjects: Petroleum & oil industries
Description: The political relationship between Norway and Russia will influence the development of Barents Sea oil and gas. The state plays a decisive role in both the
Norwegian and Russian parts of the sea. It does so as a regulator, through taxation,
and through the national oil and gas companies, Gazprom, Rosneft, and
Statoil. Thus, if the two states have a good relationship characterized by mutual
trust, they can coordinate, search for complementarities, and mitigate issues
that arise. Furthermore, due to the rising cost of oil and gas production in the
Arctic, many oil and gas fields there may deliver small returns on investments.
Scale economies brought about by coordinated development, joint infrastructure,
and information sharing can tip projects from being commercially unviable
to viable. But this depends on the ability and willingness of the two states
to actively work together.
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