1. UK-Norway North Sea Co-operation Workgroup - Transport & Infrastructure Theme Simon C Bennett Business Unit Leader BP, North Sea Infrastructure

2. Overview – Where are We? UK gas demand and security of supply – Norway gas resource Inefficient or sub-optimal development of near median line resource Infrastructure ullage Hurdles to cross border business … … some joint, some UK, some Norway … some real, some perceived T&I being worked both Norway and UK sides Key issues Case Studies How to overcome hurdles Government involvement Progress Business Context

3. Physical/Technical NTS Capacity Fiscal Government/Legal Infrastructure Marketing Issues being worked

4. Issue groupings JointUKNorway Physical/Technical Gas spec & metering; Standards; Inspection & regulation Longevity; Conflicting field developments; Wet vs. dry gas. Supply capabilities NTS Gas specification (?)St Fergus entry charges; Predictability of entry charges. Fiscal Tax leakage UK / Norway; Reduce uncertainty. Differential treatment of infrastructure Fiscal boundary on future projects Legal Treaty amendment / new; Double jurisdiction; Differences in approval, regulation, inspection processes Competition law – existing JOAs Infrastructure Marketing Codes of Practice (?) Size of prize Develop UK offerIncrease UK understanding of Gassco, Gasled II.

5. Case Studies & Teams Case StudyAnalogueTransport & Infrastructure New cross-border field development GudrunRune Brathen (Statoil) Roger Wilson* (Marathon) Field Re-developmentStatfjord – BrentFiona Macleod (Shell) Svein Roar Englesen (Shell)* Cross-border oil transportation Ula-GydaJan Norheim* (BP Norway) Andrew Hadjitofi (BP UK) Large gas transportation/processing Ormen LangeChris Spencer* (Shell) Andrew Hadjitofi (BP) * Lead NPD / DTI will input to all Cases

6. Issues for Govt - Govt Attention o Treaty clarification & enhancements Tax transparency & leakage Joint Infrastructure Code of Practice? Helping industry understand and adapt to UK- Norway-EU issues, e.g. Competition Law Participation and Technical input to case studies

7. Forward Plan Develop case studies jointly to illustrate the issues Seek ways forward on solutions Identify global analogues where barriers have been addressed Provide input to the Economics Group to assist in defining the size of the prize Joint report under development Further joint T&I Group Meetings planned for June