Denmark Receives Exemption From EU Procurement Rules For E&P

On 28 July 2011, the European Commission, following a request from the Kingdom of Denmark, published its latest decision exempting the application of the European public procurement rules in relation to the exploration for oil and natural gas, and production of oil in Denmark (excluding Greenland and the Faroe Islands).  The Commission's decision means that in future, oil and gas operators in Denmark will no longer be restricted by the EU public procurement rules and can decide for themselves whether or not to go to competitive tender in a particular situation.

The exemption process was one of the innovations introduced by Directive 2004/17/EC of the European Parliament and of the Council of 31st March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors ("Utilities Directive").  The Utilities Directive allows contracting entities to apply for an exemption from the rules altogether if it can