Hammerfest, Norway

This case study focuses on how petroleum activity has affected the local community in Hammerfest, identifying practices and perceptions of corporate social responsibility (CSR) among petroleum producers, local population, authorities, businesses and organizations.

The Snøhvit Development was approved by Norway in 2002 and came on-stream in 2007. Goliat was approved by Norway in 2009 and production is scheduled to commence by the end of 2014. These are the first gas and oil fields north of the Arctic Circle to be developed in Norway.

To promote local value creation, Statoil, operating Snøhvit LNG, has put forward requirements that contractors and suppliers and their sub-contractors should develop a local presence and acquire goods and services from local suppliers. Furthermore, Statoil along with other oil companies have supported local supply company development through financial support to organisations such as Pro Barents  and PetroArctic. No Russian contractors have been involved, but for the LNG plant, Russian welders were contracted in as a temporary workforce through the Kirkenes-based company Kimek Offshore.

Local value creation from Snøhvit and Goliat is being monitored by the research institution Norut Alta. Meanwhile, Statoil and ENI have entered into cooperation with local higher education initiatives such as EnergiCampus Nord.

The coastal fishing fleet has been employed in regional oil spill response system, supplementing fishing livelihoods. The potential negative effects on the Sami population and culture were considered in the impact assessment for Goliat. Negative effects were found to be negligible, but ENI still promises to launch initiatives directly targeting the Sami population to ensure that they gain.

 

Melkøya
The Melkøya plant, visible from the city (Photo: Eilif Ursin Reed)
Case studies