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Edition: U.S. Article Comments (1) Save Email Print Reprints Most Popular Most Shared Depressed? You must like chocolate 26 Apr 2010 New Arizona law forcing hard choices on migrants 26 Apr 2010 Police barred from penis enlargement 23 Apr 2010 Pirates rewrite script for Apple's China iPad launch 26 Apr 2010 WRAPUP 5-Thai govt vows action as red shirts block trains 7:43am EDT Lawsuit exposes Wal-Mart to billions in potential damages 8:47am EDT Police seize Gizmodo's computers over iPhone prototype 11:33am EDT Playboy's Hugh Hefner helps rescue Hollywood sign | Video 26 Apr 2010 Robert Downey Jr. returns to superhero mode for "Iron Man 2" | Video 9:26am EDT UPDATE 1-Most Greeks disapprove of EU/IMF aid deal - poll 26 Apr 2010 Depressed? 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Full Article Video: Iran tests missiles Russia and Norway strike Arctic sea border deal Denis Dyomkin and Gwladys Fouche OSLO Tue Apr 27, 2010 10:17am EDT Related News Russia's Medvedev in Oslo for Arctic energy talks 9:41am EDT Factbox: Five facts on the Russian-Norwegian Arctic sea border 9:41am EDT Norway eyes exploration in new Barents Sea region 6:51am EDT RPT-Statoil welcomes Barents Sea deal, eyes exploration 6:30am EDT Statoil welcomes Barents Sea deal, eyes exploration 6:29am EDT OSLO (Reuters) - Russia and Norway agreed on the course of their Arctic maritime border on Tuesday, after four decades of talks, paving the way for the disputed area to be opened for oil and gas exploration. World | Russia Until now, Europe's two top energy suppliers have not been able to tap into a remote and inhospitable region of the Barents Sea that lies between other proven oil and gas deposits. In a surprise announcement, visiting Russian President Dmitry Medvedev said the Arctic neighbors had agreed to "close the question" of the demarcation of their sea border off Europe's northern tip, and were preparing final documents. "I hope more projects in the energy sphere will arise ... This would be quite a practical result," Medvedev told a joint news conference with Norwegian Prime Minister Jens Stoltenberg. Stoltenberg said: "This is a historic day. We have reached a breakthrough in the most important outstanding issue between Norway and the Russian Federation." The preliminary deal envisages splitting roughly in half an area of the Barents Sea and Arctic Ocean covering some 175,000 sq km (68,000 square miles). A final accord is due later this year, Stoltenberg said. Much of the disputed zone is located between Gazprom's huge Shtokman gas discovery on the Russian side, a reservoir that alone holds enough gas to meet the world's entire consumption for a year, and two oil and gas fields off Norway in which Norway's Statoil has stakes. The two countries also agreed to increase cooperation on fisheries and on management of oil and gas resources. "The two delegations recommend the adoption of detailed rules and procedures ensuring efficient and responsible management of their hydrocarbon resources in cases where any single oil or gas deposits should extend across the delimitation line," the Norwegian government said in a statement. Jonathan Stern, professor at the Oxford Institute for Energy Studies, said the deal would probably not stoke "a massive additional energy bonanza" in the region because of the difficulties in tapping oil and gas from the deep Arctic waters. "It's a good idea for Russia to improve relations with its European neighbors by settling outstanding border issues," Stern told Reuters, adding that the agreement was facilitated by a warming in relations between Oslo and Moscow in past years. EXPLORATION FAST-TRACK? Communist-era scans of the disputed zone reportedly indicate that oil and gas deposits are generally bigger and more frequent in the eastern Barents Sea, which belongs to Russia. Some reports talk of up to 10 billion barrels of oil equivalent in the disputed zone, but oil industry officials say that modern seismic studies were needed to verify old estimates. Norwegian Oil Minister Terje Riis-Johansen said the deal would make it possible to map out the region's resources and enable oil and gas activities in the new Norwegian sector. "This means that we can define parts of this area as our own, we can search the sea bottom and map out the resources, and we can foresee activities in this area that we could not do before," he told the state broadcaster NRK. The Norwegian oil industry lobby group OLF said exploration could start in 2012 or 2013. Norway's oil production is declining as its core North Sea oilfields are gradually depleted. No major fields have been found off Norway since the late 1990s. "To the degree that this gives us a chance to search for oil and gas in the area, we'd obviously be very interested in that," said Statoil spokesman Ola Morten Aanestad. The Barents Sea dispute is part of a wider global debate about territorial claims in the Arctic, a region increasingly accessible to industry due to global warming and new technology. Frederic Hauge, head of the Bellona green group in Oslo, saw environmental hazards from the new deal. "It is clear this will increase the pressure on oil activities in the Arctic and we are very sceptical (about an opening up the region for drilling)." World Russia Comments See All Comments (1) | Post Comment Apr 27, 2010 11:19am EDT The Arctic will play a vital role for the global energy future. it is estimated that over a quarter of remaining reserves lie in the Arctic region. Of course these resources come at a price. When looking at developing this area, we must take considerable attention to environmental as well as the geopolitical concerns that outline this area. This deal between Norway and Russia, regardless of the timeframe used to achieve it, is a step towards seeing the Arctic energy landscape become a reality. Want to learn more about balanced energy for America? Visit www.consumerenergyalliance.org to get involved, discover CEA’s mission and sign up for our informative newsletter. MyCEA Report As Abusive See All Comments (1) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. More from Reuters Senate panel says Goldman inflated housing bubble WASHINGTON (Reuters) - The conduct of Goldman Sachs Group Inc during the financial meltdown was assailed on Tuesday by a U.S. Senate panel, which accused the Wall Street powerhouse of inflating the housing bubble earlier this decade and then profiting from its collapse in 2007. German lawmaker urges discount on banks' Greek debt | Video Home prices slip in February, consumer confidence up Senate to hold afternoon vote on bank reform: Reid Ford posts quarterly profit, raises 2010 outlook Bernanke says prompt action needed on deficit » More Top News Merkel's tough love German Chancellor Angela Merkel wanted to make the Greece rescue terms so onerous no country would want to follow suit. The strategy could come back to haunt her. Full Article Markets pound Greek debt Euro slides against the dollar Greek unions to strike against austerity Greece Living without "too big to fail" The Fed's Thomas Hoenig envisions the financial industry without the "too big to fail" concept to lean on. Full Article U.S. must lead on reform Bill needs bigger liquidation fund: Bair Hedge funds face global risk check Gensler explains present with past Financial Regulation Summit © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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