Hans J Marter

12 September 2007

FAROE plans to export any oil and gas still to be discovered to the Sullom Voe Terminal, in Shetland, the Faroese prime minister confirmed today (Tuesday).

Joannes Eidesgaard’s clear statement comes after months of speculations about the future potential of the developing oil infrastructure to the West of Shetland

He was speaking after a summit of the political leaders of four North Atlantic island communities, Shetland, Orkney, the Western Isles and Faroe, which was held in Lerwick yesterday and on Monday.

It was the third time since 2004 that the Faroese prime minister met with his colleagues Sandy Cluness (Shetland), Stephen Hagen (Orkney) and Angus Campbell (Western Isles).

Their meeting coincided with the start of a four day conference focussing on the future of energy supplies in the North Atlantic fringe.

During their 24 hours in the isles the Faroese delegation toured the harbour of Sullom Voe and also inspected the new inter island ferry terminals on the Yell Sound crossing.

The regular meetings between the political leaders of the four island groups are regarded as a valuable way of exchanging information and discussing common problems and challenges.

At a press conference at Lerwick Town Hall yesterday, Mr Eidesgaard said it would make economic and environmental sense to use existing infrastructure in Shetland and in Orkney to bring future oil ashore rather than building a new facility in Faroe.

He said: "In the near future we need to decide whether we shall bring the oil to the Faroe islands or to facilities at Sullom Voe, or in Orkney.

"It would not be good policies to make the same investments when we have the opportunity to use the facilities in other places, especially at our neighbours.

"The capacity at Sullom Voe is big enough and you have got the experience from the last 30 years, so why not use it?”

Mr Eidesgaard added that his government as well as the oil industry were very optimistic that oil would be found soon.

“We are starting to drill next month and we are having a third round of oil exploration. The optimist in me tells me that there is oil in the seabed below Faroese waters. It is just a question of time,” he said.

Mr Eidesgaard comments were welcomed by Shetland convener Sandy Cluness, who added that the regular exchange with its neighbours was beneficial to everybody involved.

“It is very helpful to meet each other from time to time and that can have very practical benefits. The Faroese for example are looking at Sullom Voe as a possible landfall for their oil, the Western Isles are thinking of building a museum and have been excited to see ours.

"Politically, Shetland is part of Scotland, but we have this long term connection with Scandinavia and I think it makes sense to build relationships, trade, economic and cultural links with it”, he added.

Being asked whether the Faroese government could have intervened to stop Smyril Line dropping Lerwick from its sailing schedule, Mr Eidesgaard was adamant that there was no role for government interference.

“Smyril Line is a private company. Our shareholding is less than two per cent. Unfortunately we have to accept that this is the reality now.

“I am not happy to hear that and I know what the Norröna has meant to this community, but that decision is that of a private company and I don’t want to intervene in that,” he said.