The development of the Russian Shtokman field and the second development phase of the Norwegian Snøhvit field will probably end up with a total investment of 19 billion EUR. For businesses in Finnmark County in northern Norway it is important to be a part of these projects.Otherwise, the county risks being sidelined in the rapid industrial development expected in the Barents Region.
A report recently published by the Norwegian business development company Bedriftskompetanse, shows that local businesses in Finnmark have a long way to go if they want to have their share of the investments in the Barents Sea.
Outside Finnmark
The Norwegian Barents Secretariat, Finnmark County Administration and Innovation Norway have financed the report which was presented in the Barents Secretariat last week. According to the report, most of knowledge development related to the gas-field development will take place outside of Finnmark.
One of the key factors to why businesses in Finnmark are not ready to get their share of the investments, is lack of available work force, as well as a lack of skills and experience. With scattered population and mainly small businesses, where most of their projects are either local and in neighbouring municipalities, only few companies are currently ready to bid for projects in the petroleum industry. At present most companies don’t have trouble finding contracts locally. Therefore they are reluctant to invest a lot of money and efforts on the developing of competence within a new industry, the report reads.
At the same time, a number of companies in southern Norway have been working with petroleum-related projects since the beginning of the 1970s. These companies are now ready to enter the Barents Sea projects. With 30-40 years of experience, it will be hard for the inexperienced companies in Finnmark to compete for contracts.
Bad infrastructure
Few available workers will also be a problem for local companies in Finnmark. Some companies have imported workers from Russia, but the rising levels of income in Russia have made it less attractive for Russians to apply for Norwegian jobs.
Another factor which according to the report is a crucial for businesses in Finnmark, if all parts of the county should be part of the development, is infrastructure. At the moment bad road standards both in Finnmark and neighbouring Murmansk Oblast constitute an obstacle for business cooperation across the border.
Read report (In Norwegian)
