Energy and Petroleum law

Norway is a leader in the energy market. Over 99% of the country's power production is from hydropower, and Norway is the largest petroleum exporter in the West. The field of energy law deals with the particular issues that arise within the two sectors of power and petroleum production.

In the power sector it is customary to distinguish between production, transmission and sales. Whereas sales/trading has been liberalised for some ten years, transmission over power grids is a natural monopoly and therefore, closely regulated, particularly as regards pricing. In power production, the Industrial Concession Act from 1917 is still crucial, containing many restrictions as to ownership, preference for public ownership and limited rights to sell. As a result, there has been less restructuring in this area.

Wikborg Rein provides advice relating to trading of power, (physical and financial settlement) relevant derivative instruments, mergers and acquisition work relating to power production, as well as restructuring based on operational needs or change in ownership.

In the area of petroleum production, the Petroleum Act and the fairly extensive concessions it establishes, is the core legal fundament. Wikborg Rein provides advice relating to entering into the petroleum business in Norway, the terms and conditions in the concession system, joint operating agreements and the various licences, consents, agreements involved, as well as agreements for transportation and processing, sale of oil and gas, and mergers and acquisition in the petroleum sector.

In addition, we provide advice on supply and delivery contracts to the petroleum sector including litigation arising out of such contracts.