Norway takes up to 30 % stake in Skanled pipeline project

The Norwegian Government has decided that Petoro can take part in the Skanled project with an interest of up to 30 %.
Skanled is a planned pipeline that will go from Karsto on the Norwegian West Coast to Grenland on the Norwegian East Coast, and to Sweden and Denmark. The pipeline makes possible the export of gas to Sweden and Denmark, and lays the ground for industrial use of gas in the Grenland region on the East Coast.

"We are in an economic downturn, with concern for increasing unemployment. Skanled is important for employment and value creation in Norway. The Norwegian Government is following this project closely," said Mr Terje Riis-Johansen, Minister of Petroleum and Energy.
"I am dedicated to the progress of Skanled. The Norwegian State has therefore decided to enter into the project that will realize Skanled if necessary. Skanled is important to lay the ground for industrial development in Norway and to increase the gas export capacity to Europe," added Mr Riis-Johansen.

Skanled is a complicated project, and there are remaining challenges before the project can be realized. The project is now in a critical phase to accomplish the scheduled submission of the Plan for Installation and Operation on April 1, 2009. If any of the companies reduce or withdraw their participation without any of the existing owners or other investors taking over, the consequences will be that the project doesn't have sufficient financing and the development of the project may be uncertain. The Government's decision is therefore important for the further progress of the project.
Petoro will participate in the project on behalf of the States Direct Financial Interest (SDFI).