The new organization is meant to facilitate sub-contract operations related to infrastructure and oil & gas projects in Northwest Russia. The project is to be processed in close cooperation with Russian companies and supplier organizations. This was confirmed in a presentation in the Calotte Academy in Kirkenes, Norway, by StatoilHydro’s Benedikt Henriksen. Several hundred sub-contractors are likely to be engaged in huge projects. According to Mr. Henriksen, local companies in the northernmost Norwegian county of Finnmark could compete for entrepreneur contracts in places like the project hub of Teriberka which is part of the Shtokman project. The Kirkenes-based unit of the Rambøll company has got project management responsibility for the pre study project. StatoilHydro has long been engaged in the development of supplier networks in Northwest Russia. Together with the regional administrations, regional supplier networks have been established both in Murmansk and in Arkhangelsk. In his presentation, Mr. Henriksen highlighted that the gap between the needs of the offshore oil industry and existing industrial capacities in Northwest Russia remains significant. At the same time, he expressed confidence that the Russian supply chains will develop quickly and successfully over the next years. In Norway, the industry of the 1970s needed about 8-10 years to adapt to the needs of the petroleum projects.