Zee Beam News

11 July 2007 - Upstream OnLine - Russia and Norway have signed an agreement demarcating their border in the Barents Sea, possibly opening the door to offshore exploration in an area believed to hold further significant hydrocarbon reserves. Russia's Foreign Ministry said the agreement clearly defines where their maritime border lies, and also sets out the limits to Russia's and Norway's areas of jurisdiction in the swathe of sea around Varangerfjord. The maritime border between Russia and Norway was originally established in 1957. Norway hopes the partial deal will be a step towards resolving a decades-old border dispute between the neighbours over an area of the Barents geologists believe could hold significant oil and gas resources. Officials have said the Barents Sea could become an important new source of petroleum to supply Europe, but development has been hindered by the unresolved dispute. So far, the only development in the Barents is Norwegian giant Statoil's Snohvit gas field, which is set to come on stream towards the end of this year. The massive Shtokman gas field, which has not yet been developed, lies in the Russian sector of the Barents.