-The Government proposes an increase of about NOK 100 million in the 2006 budget for petroleum research and development (R&D), says Mrs Thorhild Widvey, Norwegian Minister of Petroleum and Energy. –It is important for the Norwegian Government to increase the commitment to petroleum research in order to strengthen our petroleum industry. To secure long term profitable development of the petroleum resources, it is vital to maintain a strong competence cluster within this sector inNorway, says Minister Widvey.

The Government proposes to allocate NOK 293.5 million to petroleum R&D over the Ministry's budget in 2006, of which NOK 291.1 million will be allocated through the Research Council of Norway. This is an increase of NOK 71.2 million from 2005. Additionally, there are funds from other ministries and returns from the Fund for Research and Innovation. This adds up to a public funding for petroleum R&D of nearly NOK 400 million in 2006.

-The proposed budget is a major step towards reaching the target of an annual public funding of NOK 600 million to petroleum R&D, says Minister Widvey. -The realization of this target is an important condition forenhancing the value creation coming from the Norwegian continental shelf and the Norwegian petroleum industry, Minister Widvey adds.

Public support for petroleum R&D is mainly organized through two programmes in the Research Council of Norway, Petromaks and Demo 2000. These programmes will contribute to the realization of the goals drawn up in the Norwegian petroleum industry's strategic planning initiative, "Oil and Gas in the 21st Century" (OG21). A grant of NOK 252.1 million is proposed over the Ministry's budget to Petromaks and Demo 2000 in 2006.