Norway – UK (Frigg Field)
JDA8@NOUKF
Europe
Agreement relating to the exploitation of the Frigg Field Reservoir and the transmission of gas therefrom to the United Kingdom (with annexes).
Implementation Date: Signed on 10 May 1976, (entered into force 22 July 1977)
Maritime border Defined
Simple Revenue Sharing / Unitization
Summary:
The first UK – Norway field development agreement signed after the 1965 UK – Norway Delimitation Agreement was for the development of the Frigg field in 1976. Frigg is a field in the central part of the North Sea, straddling the border between the UK and Norwegian sectors.
At the time of discovery in 1971, the Frigg field was the world’s largest offshore gas field. Signed on May 10, 1976 and entering into force on July 22, 1977, the Frigg Agreement became Norway’s first unitization agreement. Since then, the Agreement has been a precedence for many global unitization agreements.
The agreement called for each company in the cross-border group development group to have a share in the license and invest in development proportionately. Together the companies form a license or management Committee which approves, and controls work plans, appointing one company as the operator who carries out the work. The Frigg field was shut down in 2004.
Split:
The two Governments shall endeavour to agree the apportionment of the reserves of the Frigg Field Reservoir before production of the reserves commences. If they are not able to do so, then pending such agreement, the production shall proceed on the provisional basis of a proposal for the apportionment submitted by the licensees, or, if there is none, on the provisional basis of equal shares.
<From JDA8@NOUKF#1 [2][3]>
Governance:
Each Government shall require those who are its licensees at the date of signature of this Agreement to enter into agreements between themselves and the licensees at that date of the other Government to regulate the exploitation in accordance with this Agreement of Frigg Gas, which agreements require the approval of the two Governments.
<From JDA8@NOUKF#1 [1][3]>
For the purposes of the exploitation of Frigg Gas in accordance with this Agreement, a Unit Operator shall be appointed by agreement between the licensees, subject to the approval of the two Governments
<From JDA8@NOUKF#1 [5]>
Other References:
Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Kingdom of Norway relating to the delimitation of the continental shelf between the two countries, 10 March 1965.
<JDA institute Locator><Original Source>
Framework Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Kingdom of Norway concerning Cross-Boundary Petroleum Co-operation (executed 4 April 2005, into force 10 July 2007)
<JDA Institute Locator> <Original Source>