Objectives and goals 2006-2008

  The OLF works in order to improve the attractiveness of the NCS by:

• influencing on the industry’s framework conditions, ensuring the best possible terms for competition
• finding solutions which help increase the efficiency and lifetime of fields and activities on the NCS
• undertaking tasks and joint activities that are most efficiently handled by OLF on behalf of the member companies

 The objectives and goals describe priorities laid down by the governing bodies for the organisation's work carried out by committees, resource groups, networks and the administration.

 The OLF is viewed as a serious player entitled to viewpoints in most issues related to enterprise and working life. We share many common interests with other parties as regards the need to develop the industry and the society. We will build on and expand these common interests. Through co-operation across the petroleum industry, we will continue our efforts to increase the competitiveness of the NCS.

The OLF is working to strengthen the perception of the oil industry as an important knowledge industry. By communicating important messages with greater strength and higher visibility towards key target groups, the OLF wants to build a better understanding and acceptance of the oil and gas activities on the shelf.

VISION, VALUES AND PRINCIPLES

 Vision

 Our vision is to further develop a competitive oil and gas industrywhich enjoys respect and trust

Values

Credible /Accessible/ Courageous/Collaborative

Principles

 The OLF believes that value creation and prosperity are closely linked. Issues pursued by the OLF will also be in the best interests of the wider community. The OLF's work will be based on the following principles and values:

• the importance of profitability for the industry
• the principle of free competition
• respect for people, safety and the environment
• a high ethical standard and awareness of the industry's social responsibility

1 HSE

Objective

• Continue to be the leading industry on HSE.

Goals

• Based on a zero-accident philosophy, the goal for the Norwegian oil industry is to eliminate:
  • Fatal accidents
  • Personnel injuries
  • Long term negative effects on health caused by the working environment
  • Accidental spills
  • Serious material losses

2 ACCESS TO PROSPECTIVE ACREAGE

Objectives

• Ensure continuous and predictable access to prospective exploration areas to support long term development of the Norwegian Continental Shelf.

Goals

• Further develop a licensing policy that provides attractive opportunities both in mature and frontier areas. Ensure that the frequency and scope of licensing rounds and annual APAs (TFOs) are kept at an optimum level.
• Open northern areas for petroleum activity. Initiate a Regional Impact Assessment in the Nordland area immediately following the Integrated Management Plan.
• Ensure predictable and consistent operating requirements with respect to exploration drilling.
• Co-existence with other stakeholders.

3 THE EXTERNAL ENVIRONMENT

Objective

• Ensure that the petroleum activities in Norway are conducted in accordance with high environmental standards.

Goals

• To further work towards zero environmental hazardous discharges to sea.
• To obtain agreement with the authorities on zero discharge goal achievement.
• That the oil industry is included in international emission trading system for CO2 by 2008. The CO2 tax should be removed when emission trading is introduced.  
• To participate in schemes to use CO2  capture, storage and injection provided it is found to be cost efficient.
• That the policy instrument system established to ensure that goals are reached with regard to limiting NOx emissions is flexible enough to facilitate maximum cost-effectiveness in the measures.

4 PAY AND WORKING CONDITIONS

Objective

• To have attractive terms and working conditions that are set in accordance with industry practice.

Goals

• Facilitate decentralised pay determination through development of the various pay agreements.
• Develop the agreements so that the companies achieve flexibility in how they utilise their resources.
• Develop the pay schemes in order to better reward and stimulate for competence development and improvement.
• Achieve a development in pay and working conditions over time which is in line with other sectors of the Norwegian industry.
• Develop and work for solutions which reduce the potential for industrial disputes.

5 PROFITABILITY/OPERATIONAL EXCELLENCE

Objective

• Improve the competitiveness and profitability throughout the value chain of the industry, and throughout the cluster. 

Goals

• Continue developing and updating model contracts.
  • Limit third party responsibilities causing high insurance cost.
  • Establishing a better risk - reward balance.
  • Implementing incentives for innovation and development of new technology.
  • Implementing mechanisms for price adjustments in long-term contracts, reflecting significant changes in currency rates.
• Ensure competitive framework conditions and regulations.
• Achieve competitive unit lifting costs.
• Realise the full potential of integrated operations (IO).

6 FISCAL FRAMEWORK CONDITIONS/TAX

Objective

• To ensure competitive fiscal conditions on the NCS. 

Goals

• To have a petroleum taxation system that can stimulate the activity level on the NCS.
• To have the current practice of limited use of SDFI interests in new fields continued.
• To obtain cost-effective measures by the government towards the petroleum activity on the shelf to reach national ambitions to reduce emission of CO2 and NOX. Specifically, the CO2 tax should be removed by 2008, in exchange for the industry's entrance into the emission trading system for emissions of CO2.
• To ensure that Norwegian commitments to reduced emissions of nitrous oxides (NOX) are not met through new, disproportionately large taxes on the Shelf.  Alternatively, the OLF will work for a (national) emission trading system for emissions of NOX.

7 R&D AND INNOVATION

Objective

• That R&D related to the development of a competitive oil and gas industry becomes a key area in the Norwegian research activities. 

Goals

• To obtain increased public expenditure on petroleum-related R&D.
• To obtain framework that makes it attractive to invest in R&D in Norway for the oil and gas industry.
• That the OLF contributes to increase R&D funds allocated to areas that give the best value creation of the petroleum resources on the NCS, by working closely with OG21.
• That the OLF works more closely with OG21 and Intsok in order to promote the teamwork effect between export efforts for the supplier industry and access to challenging tasks on the Norwegian Shelf.
• That license-financed research shall contribute to strengthen the overall Norwegian oil and gas research commitment.

8 KNOWLEDGE AND EDUCATION

Objective

• Contribute to achieve the best possible concurrence between education programmes and the industry's need for manpower resources.

Goals

• Influence value creation through focus on development of expertise and technology.
• Ensure that the industry attracts capable people with the right expertise.
• Strengthen understanding, acceptance and recognition of the significance of the oil and gas industry for value creation and welfare.
• Contribute to increase the number of graduates within science and mathematics in order to meet the future requirements and challenges.

9 MEMBER FOLLOW-UP AND ORGANISATION

 Objective

• Ensure work processes that safeguard the interests of the members.

• Maintain well-functioning dialogue arenas for all member companies.
• Ensure a development of OLF as an organisation that retain and attract the relevant companies within the oil and gas industry.
• Ensure high quality on the work carried out by the organisation.
• Work towards a legislative and regulatory development that safeguards the member companies' interests (ref. new Working environment act and Shelf regulations).