A major conference to be held in Shetland will focus on the growing opportunities in the transportation of Arctic oil and the role Scottish terminals and infrastructure can play in this.

The Northern Maritime Corridor (NMC) International Management Group Meeting and Conference will be held in Shetland between the 22nd and 24th of November.  The conference has been organised by Highlands and Islands Enterprise (HIE) and Shetland Islands Council (SIC) in partnership with the NMC lead partners in Norway.

As Russia moves to open new oil export routes, the number of oil shipments from the Barents Sea area and along the Norwegian coast continues to grow.  In the first half of this year oil shipments expanded by 60% compared to first half 2003 and it is estimated that 149 tankers passed along the Norwegian coast from January to June this year, compared with just 49 vessels a year ago.

Total Russian oil production is now sitting at around 9.3 million barrels a day, bringing it close to Saudi Arabia levels.

Project manager for the NMC Highlands and Islands Region, Dr Alf Baird of Napier University, said: "The objectives of this conference are to consider the expected substantial growth in Arctic oil flows and assess the potential role of existing specialized transhipment centres within the NMC area, including those in the Highlands and Islands, in terms of handling some of this traffic. 

"Importantly we also want to ensure safe and sustainable transport practices are used by all involved in the movement of oil."

Donald MacNeill, HIE's senior transport policy manager said: "We are expecting up to 70 people to attend the conference, with delegates from Scotland, Norway, Russia, Netherlands and Germany.

"The vision of the NMC is to achieve economic growth in the coastal areas around the North Sea by highlighting the marine transport opportunities which exist.  One of the key opportunities is to tap into the growing importance of Russian oil exports.  There are business openings in this trade for ports such as Sullom Voe, Scapa Flow and the Cromarty Firth.  That's why this conference is important - bringing together the oil companies and the harbour operators."

NMC research has established that shipping costs for Arctic oil could be reduced for certain ship sizes or packages using transhipment through existing oil terminal facilities in the NMC area, including those in Norway as well as in northern Scotland.

The cost saving would primarily be due to the potential use of much larger vessels for the final transportation leg - essentially using smaller tankers to ship the oil around Norway and then loading larger, more cost effective tankers for the longer voyage to the eventual destination. 

European Spokesperson for Shetland Islands Council, Councillor Leslie Angus said: "We look forward to welcoming the NMC meeting and conference to Shetland.  Twenty-six years of successfully operating a major oil terminal in the environmentally sensitive area of Sullom Voe, close to the North Sea and Atlantic oilfields, makes Shetland an ideal location for our northern European neighbours to discuss the safe transportation of oil around our shores."