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Local spin-offs from Snøhvit

May 15, 2003, 09:00 CEST

The value of contracts secured so far by north-Norwegian industry for the development at Melkøya, near Hammerfest, are of a value greater than was foreseen for the entire development period.

At the end of April, firms in Norway's three most northern counties – Nordland, Troms and Finnmark – have been awarded contracts worth NOK 980 million in connection with the Snøhvit project. Companies in Hammerfest alone have already secured deliveries worth NOK 710 million. The expected value of local contracts for the whole development period from 2000 to 2005 was NOK 600 million.

"The petroleum industry in general is a demanding customer," says Halvor Engebretsen, industrial coordinator in Statoil. "The fact that north-Norwegian firms have succeeded in winning such large contracts gives the region a seal of approval."

Mr Engebretsen believes that this is partly due to the extensive collaboration between Statoil and the Snøhvit Industry Association. The association currently organises nearly 400 local and regional firms aiming at deliveries for the Snøhvit project.

"Through a good dialogue we ensure that potential suppliers and sub-contractors are informed early on of requirements, so that they have time to be pre-qualified and can thereby compete for the jobs," Mr Engebretsen adds.

He points out that this lays the basis for continued collaboration, which is important for Statoil as well as for northern Norway.