In the recent Norwegian 17th licensing round, domestic companies and the State's Direct Financial Interest (SDFI) got away with the most promising and sought-after acreage near proven reserves.

Statoil won operatorship of PL 281, north of the Ormen Lange discovery. Shell secured operator0ship in PL 282, north of the Helland Hansen area. Norsk Hydro became operator in PL 283 and PL 286, covering the Fles Nord area northwest of the Asgard field. Phillips Petroleum won 40% in PL 284, west of the Norne field. And Agip got a major share in PL 285, north of Norne.
Only 18 blocks in six licenses were awarded, and 14 of the 32 blocks on offer were left unawarded, reflecting limited interest in the acreage offered.
Eleven companies will receive offers to participate in 18 blocks or parts of blocks in Norway's 17th licensing round.
Some companies not awarded acreage in the round may question the preference given Norwegian operators and the fact that the government held on to direct participation in only the best prospects. This may be a reversal of the trend toward an increasing role for international companies seen in Norway's 15th and 16th licensing rounds.
Curiously, the Norwegian oil companies each were awarded the acreage they found most attractive. Statoil was offered the operatorship and 30% of PL 281, which covers the deepwater blocks 6405/4, 6405/7 and 6405/10 on the Grip Ridge in 2,100-ft to 2,700-ft (700-m to 900-m) waters. Statoil will share this license with Shell, BP, Phillips and SDFI. If sufficient resources are proven, development plans call for a change in the operatorship, with Statoil as operator in the exploration phase, while Shell will resume operatorship once production begins. In addition, Statoil won a 20% interest in PL 282, covering deepwater blocks 6504/6, 6505/1, 6505/2, 6505/4 and 6505/5.
"We've got what we wanted," said Kent Høgseth, Statoil's project manager for the 17th round. He characterized PL 281 as promising, and expects the group can spud its first well there next year.
Shell won operatorship and a 30% share in PL 282, consisting of five blocks to be shared with Norsk Hydro, RWE-DEA and Statoil. In addition, Shell received a 20% share in PL 281.
Norsk Hydro also expressed satisfaction after winning operatorship in sought-after production licenses 283 and 286, covering the Fles Nord area, which potentially contains large gas resources. Its partners will be Conoco, ChevronTexaco and SDFI/Petoro. The Fles Nord blocks are in 2,700-ft (900-m) waters centrally in the Voring Basin. The company also received a 25% share in PL 282.
Phillips Petroleum won operatorship in its chosen area and got 40% in PL 284, comprising blocks 6607/11 and 6607/12. Its partners will be ChevronTexaco and Dong.
Agip got operatorship in PL 285 with a 70% share, and partner Gaz de France holds the remaining 30%.
BP was not awarded operatorship in any license. John Pickard, exploration and appraisal manager, said even though BP won a 20% interest in PL 281, an operatorship would have been important to maintain activity and investment levels in Norway.
As the application deadline neared, ExxonMobil, TotalFinaElf, Amerada Hess and Paladin decided not to apply for acreage, mostly due to the reduced number of blocks offered and the risks associated with the water depths and geological features.
For the first time, the Norwegian Ministry of Oil and Energy allowed groups of companies to submit joint applications. Statoil, Shell and Enterprise Oil chose to submit a joint application, as did BP and Conoco, while Norsk Hydro's partner ExxonMobil dropped out of the round.
The number of blocks on offer was reduced from 93 to 32, mainly due to pressure from the Norwegian Pollution Authority.
Blocks in the Nordland VI area were not included in the round as the Norwegian government believes there is a need for more information about the consequences of offshore exploration and production before expanding petroleum activity in this environmentally sensitive area. An impact assessment of all-year petroleum activity in the areas from Lofoten and northward is in progress, and the Norwegian government is awaiting results from this impact assessment before additional blocks in this area are awarded.
"Our goal is that petroleum activities shall coexist with other industries within the framework of sustainable development," said Oil and Energy Minister Einar Steensnæs.
Licensing rounds in the Norwegian Sea are planned for every second year.

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