The Norwegian government has awarded 28 oil and gas companies a total of 69 offshore blocks to explore for petroleum in mature areas of its continental shelf, the Norwegian Petroleum Directorate said on Jan. 14.
Shell, ConocoPhillips, Total and Equinor won blocks, as did DNO, Aker BP, Lundin Petroleum and Eni’s Vaar Energi.
Private-equity backed firms, such as Chrysoar, which acquired ConocoPhillips assets in the British North Sea last year, and Neptune Energy received stakes in eight and 13 blocks respectively.
Russia’s Lukoil, which holds stakes in two licenses, and wholly-owned Rosneft subsidiary RN Nordic, a previous license holder, were not awarded any blocks. A ministry spokesman declined to comment on why.
The annual predefined areas (APA) licensing round covers blocks adjacent to acreage previously explored or developed, as opposed to licensing rounds in the country’s frontier areas.
Thirty-three oil companies had submitted bids by a September deadline for a total of 90 offshore exploration blocks, including 48 in the Arctic Barents Sea.
The number of final awards depends on a range of factors, including Norway’s requirement that each license must have several owners.
Of this year’s 69 licenses, 33 were in the North Sea off southern Norway, 23 were in the Norwegian Sea off central and northern Norway and 13 were in the far-north Barents Sea.
Norway’s oil and gas output is expected to rise sharply in the next several years as recent large discoveries come on stream, and authorities are keen to extend the lifespan of the oil and gas industry for decades to come.
“Hopefully, the exploration in the awarded acreage will result in new discoveries,” Oil and Energy Minister Sylvi Listhaug said during an industry conference in southeast Norway. “This is important to ensure employment, value-creation and future government revenue for Norway’s largest industry.”
Separate from the APA awards, Norway also conducts so-called numbered licensing rounds, which include frontier parts of the Norwegian Continental Shelf, where exploration is more risky, but where large finds could be made.
The government aims to announce the next numbered licensing round before Norway’s 2021 general election but must first agree an updated plan on areas to exempt due to environmental concerns, particularly in the Arctic.
The Norwegian Petroleum Directorate estimates that two-thirds of Norway’s undiscovered oil and gas resources are in the Barents Sea, but exploration there has been disappointing in the last few years.
Recommended Reading
Entergy Picks Cresent Midstream to Develop $1B CCS for Gas-fired Power Plant
2024-09-20 - Crescent will work with SAMSUNG E&A and Honeywell on the project.
FERC Chair: DC Court ‘Erred’ by Vacating LNG Permits
2024-09-20 - Throwing out the permit for Williams’ operational REA project in the mid-Atlantic region was a mistake that could cost people “desperately” reliant on it, Chairman Willie Phillips said.
Golar LNG Enters $1.6B EPC Agreement for FLNG Project
2024-09-18 - Golar said the floating LNG vessel has a liquefaction capacity of 3.5 million tons of LNG per annum and is expected to be delivered in fourth-quarter 2027.
Bayou Midstream Secures New Equity Commitment from EIV Capital
2024-09-18 - Bayou Midstream II’s commitment from EIV Capital follows Bayou’s predecessor company's successful exit of Bakken infrastructure in 2024 to Bridger Pipeline.
Energy Transfer Says La Porte Pipeline Fire is Burning Itself Out
2024-09-18 - Analysts said they suspect that the pipeline is Energy Transfer’s Justice pipeline, and that news of the blaze has sent prices of propane and butane up since markets closed on Sept. 13.