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USD 1 = NOK 6.70 No. 06 - 16 February 1993
CONTENTS:
Cautious optimism (1)
Norway's oil wealth greater than believed (2)
Alpine triumph for Norwegian skiers (3)
Labour unveils long-term plan (4)
1994 Games well on schedule (5-6)
Election campaign starts to roll (7)
Power to the Dutch (8)
Healthy result for Hafslund Nycomed (9)
Oil slick? - In the bag! (10)
norinform/1 16 February 1993
CAUTIOUS OPTIMISM
The Norwegian economy is on a rising curve, and traditional industries
can expect higher prices for their goods and increased profitability.
But unemployment will increase sightly during the next two years, says the
Central Bureau of Statistics.
Industrial growth was higher in Norway last year than in most of
the industrialized countries, though this did not create any new jobs in the
private sector. On the contrary, the number of jobs fell by 20,000.
Counterbalancing this was a growth of jobs in the public sector of 15,000.
The Gross Domestic Product (GDP), which expresses the value of everything
produced in Norway, rose by 2.9 per cent.
Traditional exports are not expected to swell by very much this year, but
there may be a 4 per cent growth in 1994. Nevertheless, key industries expect
improved profitability during the next two years due to rising prices on
export goods. The current accounts surplus will probably increase a little
- from USD 3.1 billion in 1992 to USD 3.5 billion this year, rising to
nearly USD 7 billion by 1994. The Bureau is confident that the floating of
the NOK and increased value added tax (VAT) will not trigger a new wave of
inflation. The VAT increase this year will lead to 3.6 per cent
inflation, but by next year this figure will be reduced to 2.3 per cent.
Despite falling interest rates, most people will not be much better off.
Rising prices eat up any growth in real wages, though in 1994 these are
expected to inch forward a little. (norinform)
norinform/2 16 February 1993
NORWAY'S OIL WEALTH GREATER THAN BELIEVED
The Norwegian Continental Shelf contains 12 per cent more oil than
previously estimated, the Petroleum Directorate has announced. Total reserves
in Norwegian waters are put at 10 billion tonnes of oil equivalents (toe).
Only 11 per cent of this amount has so far been tapped. This upgrading of
estimates means that Norway can produce oil at current levels (around 80
million tonnes per year) for another 45 years. If yearly gas production is
increased from the present 25 billion cubic metres (cum) to 65 billion
cum around the turn of the century, gas resources will last about 80
years, says director Arild Nystad in the Directorate. In general terms
one may say that Norway is about half way through its life as an
oil-producing nation.
The new figures are based on reliable information on anticipated,
undiscovered resources, new technology and the future potential for increased
extraction from existing fields. The value of the extra reserves - based on
an oil price of USD 20 per barrel - is USD 171 billion.
Prospecting results in the last three years give grounds for optimism.
Thirty new finds were registered, with an average reserve of 10 million
toe. Though these must be defined as small fields, Norway will reap the
benefit of the USD 86 billion which have been invested in infrastructure.
Half of the new reserves are expected to be found in the North Sea, the
rest being divided between the Barents Sea with 60 per cent and offshore mid
Norway with 40 per cent. The further north one moves the more tentative
are the estimates of new reserves. In the Barents Sea, anticipated
undiscovered reserves have been reduced from 1.5 to 1.1 billion toe.
(norinform)
norinform/3 16 February 1993
ALPINE TRIUMPH FOR NORWEGIAN SKIERS
Seen through Norwegian eyes, the World Alpine championships, held at
Morioka-Shizukuishi in Japan, were the best ever. A shining harvest of
three gold medals, three silver and one bronze lifted Norway to the position
of world's top skiing nation, also in alpine disciplines.
Kjetil Andre Aamodt blew away the opposition to secure two gold and one
silver medal during the championships, winning the slalom and giant slalom
and coming in second in the combined downhill/slalom. All in all he was the
championship's best skier.
His compatriot Lasse Kjus secured the gold medal in the
combined downhill/slalom, while Atle Skaardal won the silver medal in the
downhill race. Astrid Loedemel secured second place in the women's
downhill and third place in the super-G.
Kjetil Andre Aamodt's favourite discipline, super-G, was cancelled because
of heavy snow in weather-plagued Morioka. Nevertheless, he has gathered the
second biggest collection of medals that any alpine skier has acquired in
the World Championships. "It's important to build up a big store of strength
and energy before a champoionship event, but the main thing is
concentration on what you are doing. I managed this in both the slalom and
giant slalom races. I think that's the reason why I now have two gold
medals. Margins are tiny in alpine events. This time they were on my side,"
says Aamodt modestly. (norinform)
norinform/4 16 February 1993
LABOUR UNVEILS LONG-TERM PLAN
The Labour Party Government has issued its proposed long-term plan for
1994-97. The programme is marked by an emphasis on promoting business while
maintaining moderation in public and private consumption. "The programme
is good - better than the proposals I used to help make when I was state
secretary for Prime Minister Kaare Willoch in 1985, says Director
Terje Osmundsen at the Confederation of Norwegian Business and Industry.
Labour asserts in its programme that framework conditions will contribute
to increased formation of values, and that it will become more
profitable to manufacture goods in Norway. The Government will stress
the importance of securing Norwegian firms good access to overseas markets,
and will tailor taxes, subsidies, and various regulations to harmonize
with proper use of resources. Laws and regulations which affect business
will be simplified and special attention given to small and
medium-sized companies. In this connection, laws regulating the establishment
of new firms, business hours and hotel operations will be evaluated.
The Government outlines a picture of oil and gas activities marked by
continuity and a relatively high pitch of activity in years to come.
Petroleum production is expected to remain at about the current level until
2020. Prime Minister Gro Harlem Brundtland says that her party's plan
is the path to follow if unemployemnt is to be combated. The
Government claims that if it wins the support of unions and a majority in
the Storting, unemployment should fall from 6 to 4.5 per cent by 1997,
and another percentage point by the end of the century.
(norinform)
norinform/5-6 16 February 1993
1994 GAMES WELL ON SCHEDULE
On 12 February, a big celebration in Lillehammer, host town for the
1994 Olympics, marked the fact that in one year's time the Olympic flame
will burn above the town. Preparations are in their final stages.
All the sports stadiums have been completed, with the exception of the
Gjoevik Olympic Cavern Hall, which will be opened in May.
"I don't think any Olympics organizers have got this far a whole year before
the Games begin. But detail planning is a gigantic jigsaw puzzle. Even
though we're on schedule, I'm afraid that the time we have left will be
fairly hectic," says Petter Roenningen, Head of the Lillehammer Olympic
Organizing Committee (LOOC). "If test arrangements this winter reveal
any faults or deficiencies, we're going to have a lot to do," he says.
Fears that LOOC would have to approach the Government for more money have
been totally dispelled. With one year to go, 90 per cent of the income has
already been secured and money is flowing in in such quantities that LOOC
has increased its incomes target by USD 23 million compared to the original
budget. Most of the extra earnings come from sales of licensed Olympics
products such as clothes and souvenirs.
Transport has replaced accommodation as LOOC's biggest headache. No one
knows exactly how many people will come to Lillehammer, but the estimated
100,000 could easily turn out to be 150,000. The tranport system will give
priority to those with tickets to the Games, but far from everyone will have
a "permit" of this kind.
norinform/6 16 February 1993
"I see signs of mounting enthusiam among the Norwegians," says Petter
Roenningen. "As each stadium is completed and seems to be functioning well,
scepticism ebbs away. The Norwegian triumphs at Albertville play an
important part in this. Prospects of a rich harvest of medals have sharpened
interest and expectations. If we roll up our sleeves and and do our best,
I'm sure we can arrange the best Olympics in history," says an optimistic
LOOC director.
But the weather also plays a part in deciding the success of the Games. In
this respect Lillehammer has little to fear. Meteorological observations
going right back to 1891 indicate that Lillehammer will have 6 to 8
degrees below zero (Celsius), plenty of snow and generally cloudless skies in
February 1994. Per Oeyvind Nordli at the Norwegian Meteorological Institute
says he is more afraid of low temperatures than lack of snow. But there is
only a 2 per cent risk of temperatures sinking to an icy 20 below zero
during the Games.
In recent weeks Lillehammer has been enjoying sunshine, blue skies and
early morning temperatures of 6 to 9 degrees above freezing. The streets of
the town and the roads leading to it are dry and there is plenty of snow
on the runs. This is just the kind of weather - with the addition of a
little new snow at nights - that Lillehammer would like in one year's
time. (norinform)
norinform/7 16 February 1993
ELECTION CAMPAIGN STARTS TO ROLL
Norway goes to the polls in September and the political parties have started
to take up battle positions. First in the field was Thorbjoern Jagland,
chairman of the Labour Party, who began proceedings with a proposal for
closer cooperation between Labour and the Socialist Left Party. "If we
continue squabbling, we will end up with a Conservative government," he
says. But his initiative has led to nothing. The two parties are still
engaged in a battle of words. Hill Martha Solberg, deputy chairman of
the Labour Party, disagrees with Jagland and wishes the struggle to continue.
"In North Norway the Socialist Left Party is one of our biggest
opponents," says Solberg.
The governing Labour Party, led by Prime Minister Gro Harlem Brundtland,
has long ago defined the Conservative party as its main opponent. The
Conservatives followed suit, a move which prompted Anne Enger Lahnstein,
head of the Centre Party, to characterize the parties' stategies as
deceptions, at variance with the facts. "The views of the Labour
Party and the Conservatives on vital political issues are becoming more and
more difficult to distinguish from each other," she asserts, probably
bearing in mind the fact that both Labour and the Conservatives are in favour
of EC membership and that both have approved the recently adopted changes
in Norway's long-standing agricultural policy.
Opinions polls reveal that Norwegian voters are more undecided than ever
before. But an average of polls taken in January shows that the
Conservatives and the Centre Party have gained supporters. Using an
average of several opinions polls as a basis, a national assembly based on
these figures would have the following composition: Labour 59 seats (63 at
1989 poll), Conservatives 42 (37), Progress Party 9 (22), Socialist Left 24
(17),Christian Democrats 10 (14) and Centre Party 20 (11).
(norinform)
norinform/8 16 February 1993
POWER TO THE DUTCH
The electrical power generating company, Kraftselskapet Soerkraft A/S, has
signed a provisional agreement on the export of power to the Netherlands.
The contract involves laying an electrical cable on the seabed from
South Norway to the Netherlands. The price of the project, including
the land-based link-up facilities,is USD 430 to 570 million.
The power from Norway will cover consumption at peak daytime hours in
the Netherlands. The Dutch can return a corresponding amount of power to
Norway at night, or purchase it for an additional sum, equal to the fuel
costs of a heat-generating station. The arrangement is described as
favourable for both Norway and the Netherlands. In periods where Norway
has surplus power, the net export of power to the Netherlands could reach 2-3
TW hours a year. Initial plans cover a period of 15 years, with options for
extensions of five years at a time. Plans are now being drawn up and by 1
July a draft will be submitted to the authorities for approval.
The cable will be operative by 1995 or 1996 at the earliest.
Soerkraft consists of four power generating companies in South Norway
working in cooperation. The Dutch partner to the deal is EDON.
Other Norwegian power generators are working hard to set up export
contracts with Germany and Great Britain as a consequence of the recent
increase in the amount of power that Norway is allowed to export.
(norinform)
norinform/9 16 February 1993
HEALTHY RESULT FOR HAFSLUND NYCOMED
Hafslund Nycomed, the Norwegian pharmaceutical concern, ran operating profits
of USD 835 million in 1992, a USD 50 million improvement on 1991. Its 1992
profits before extraordinary items totalled 215 million dollars, up by 17
per cent in one year. Such profit margins are few and far between in
Norwegian industry. A healthy chunk of the company's return - about USD 93
million - was ploughed into research and development, slightly more than in
1991. The positive results made Hafslund Nycomed rise to 194th place among
the top 500 European registered companies, up from its 1991 position of
228.
The company's X-ray contrast liquids continue to be its biggest
money-makers. Sales of its chief brand, Omnipaque, are on the rise in Japan
and the USA, and turnover is stable in Europe. In the third quarter,
another X-ray liquid, Omniscan, was accepted and introduced to the British
market. A few weeks ago it was introduced in the USA and the response is
promising.
Another Norwegian company which is pleased with its 1992 results is Alcatel
STK. It wound up at the end of the year with USD 24 million in profits -
a vast improvement on its USD 1.7 million result in 1991. The company's
pretax turnover was USD 425 million, about 4 million more than the previous
year. Alcatel STK, one of the leading hi-tech companies in the country,
has gone through a series of cost-cutting measures and made efforts to adjust
to competition on the world market.
(norinform)
norinform/10 16 February 1993
OIL SLICK? - IN THE BAG!
A Norwegian inventor, Leif Andreassen from Sogn og Fjordane county has
kindled the enthusiasm of environmentalists as well as the oil industry for
his trawling bag, which he claims could be used to sweep up oil slicks even
when waves tower as high as 12 metres.
The main advantage of the oil trawling blanket is that it can be used in
very heavy seas. Existing equipment does not function when waves
exceed the relatively modest height - by North Sea standards - of two
metres. Andreassen's
oilbag s drawn towards an oil slick by two tugboats. The 'mouth' of the oil
blanket or bag, 500-metres at its widest, can take up a one square
kilometre slick, collecting 10,000 tonnes of oil an hour.
The trawling blanket consists of four parts. The first and broadest part,
closest to the trawling bag,is called a storm blanket because it softens
waves. The second and third sections also reduce waves while gathering the
oil and leading it to a well at the back of the bag. From here it can be
pumped to another bag or to a ship.
The State Pollution Control Authority has pledged a sum of about USD
43,000 toward development of the new device. Representatives of the
Norwegian oil protection industry are interested in constructing a
prototype and hope to have one made within a year.
(norinform)
.