Brussels, 13/06/2001 (Agence Europe) - On Wednesday, the European Commission sent a statement of objections to the Norwegian companies Statoil and Norsk Hydro, warning them that joint gas sales through the Gas Negotiation Committee (GFU) is in breach of the European Union competition rules and the provisions of the EEA agreement. The affair concerns the sales of natural gas from Norway to the EU, carried out since 1989 by the GFU intermediary. The latter today groups Statoil and Norsk Hydro. GFU negotiates sales of gas with buyers on behalf of all the other Norwegian producers and therefore fixes the selling price, volumes and all other trading conditions. The Commission considers that the companies concerned should put an end to joint gas sales and eliminate the restrictive effects residing in the contracts concluded with third parties under the joint selling scheme - which means that it is also calling for compensation for past injury.
GFU concluded a large number of long-term sales contracts with European operators in the gas sector. These agreements, the Commission points out, perpetuate the adverse effects of the joint selling system during many years and are at the origin of significant rigidity and lack of liquidity in the European gas markets. The Commission welcomes, however, the recent announcement made by Oslo, of measures aimed at putting an end to joint gas selling via GFU from 1 June, but it hopes such measures will be effectively implemented by the companies concerned.