neo April 30, 2015 No Comments

NBAC, in partnership with the Norwegian Embassy, CIBA and ERPIC, arranged a successful meeting on the 20th April with 125 individuals attending, where Mr Claes Reksten from Petrad presented “What can be learned from the Norwegian Model”. Following the presentation was a panel debate about Cyprus as the regional oil and gas service hub for the Eastern Mediterranean sector.

The Norwegian Model highlights were:

–       It took Norway 40 years to develop and invest in its oil production and service industry before anything could be accumulated into the sovereign wealth fund.

–       The creation of a successful model for any country demands long term planning and a strong interaction between local industry, the government, regulatory bodies and the international oil industry.

–       The state of Norway puts its own money on the table and participated directly in the risks of the exploration and development of the oil and gas fields.

The following panel discussion main points:

–       Cyprus is an ideal hub for the Eastern Mediterranean oil/gas service industry because of its geographical location, EU and EURO membership and its present infrastructure.

–       Cyprus government is passing on a great opportunity to create employment and future tax income, when they are not actively supporting the international oil and gas service companies to establish themselves in Cyprus.

–       Cyprus government should promote building a service base in Cyprus for the regional Exploration and Offshore production of oil and gas.

–       Local companies are facing a steep learning curve in order to adapt to the high quality standards and regulatory requirements demanded by the international oil and gas industry for certified workers (for instance: welding, pipe works, electrical/electronic works)

–       Local companies must abandon the wait and see mentality and actively seek cooperation with overseas oil and gas firms in order to obtain competence and support for developing a local service industry.

The event will have a follow up meeting in the autumn, which will focus on bringing international companies to the Eastern Mediterranean region.

We will email Mr. Reksten´s presentation to any interested party. Please contact us for further information.