Local spin-offs worth NOK 3 billion

September 1, 2006, 10:00 CEST

Companies in Northern Norway have won contracts worth more than NOK 3 billion during the construction of Hammerfest LNG at Melkøya.

At the end of July companies in Nordland, Troms and Finnmark were awarded contracts worth almost NOK 3.1 billion. When the development was approved in 2002 the local share of the deliveries in the entire development period was expected to total NOK 600 million only.

”We are very pleased with the figures for the regional industry,” says Sverre Kojedal, industrial coordinator for Snøhvit.

”Participation by local companies in the Snøhvit development increases local skills and local competitiveness for future petroleum projects in the north,” he says.

Mr Kojedal emphasises that the figures refer to contracts associated with the development phase. Significant contracts have also been signed for deliveries in the operating phase for the Melkøya plant. Statoil has here included as a requirement that the principal suppliers must set up business locally and thus help create local jobs.

Norwegian suppliers have also secured a greater share than was expected when the development was approved. The July figures show that well over 60% of the contract values ended up in Norwegian companies, whereas the expected share was 40%.