Norway awarded 61 offshore exploration blocks to 30 oil firms in its latest pre-defined areas (APA) licensing round as it seeks to find more resources close to existing fields, Energy Minister Tina Bru said on Jan. 19.
Norway, which began to extract oil and gas from its offshore continental shelf 50 years ago, believes it has still only pumped about half of its available resources.
Firms that won stakes in the licenses included Equinor, Shell, Aker BP, ConocoPhillips, Total, Lundin Energy and Eni’s Vaar Energi.
“These companies have shown great interest in gaining access to new exploration acreage, illustrating the industry’s confidence in continued profitability from exploration on the Norwegian Continental Shelf,” Bru said.
APA rounds cover areas with known geology or near existing infrastructure.
“The broad interest shows that companies still believe in the Norwegian continental shelf and in the future profitability of exploration,” said Anniken Hauglie, who heads the Norwegian Oil and Gas Association, an industry group.
Sweden’s Lundin received stakes in 19 licenses, followed by Equinor with stakes in 17 licenses, while Aker BP and DNO each got 10. ConocoPhillips received stakes in four licenses, Total in three and Shell in one.
Vaar Energi will operate all three licenses awarded in the Arctic Barents Sea.
Three companies on the original list of applicants did not win any acreage, including RN Nordic Oil, which is a unit of Russia’s Rosneft, and Horisont Energi, a firm dedicated to hydrogen, ammonia and carbon storage solutions.
The third company left off the list of awards, Japan’s Idemitsu, recently sold much of its oil and gas business in Norway to Lundin Energy.
Norway has also invited oil firms to submit applications by Feb. 23 for 136 exploration blocks in frontier areas in the Barents Sea and the Norwegian Sea.
Last December, the country’s top court dismissed a lawsuit by environmental groups against oil exploration in Arctic waters.
Norway is western Europe’s largest oil and gas producer, with a daily output of around 4 million barrels of oil equivalent.
Recommended Reading
US LNG Export Market Share Reaches 21%, Despite Biden Pause
2024-09-09 - Despite the Biden administration’s pause on LNG export facilities, the U.S. took the spot as global LNG exporter in 2023, overtaking Australia, Qatar and Russia, according to the International Gas Union.
Hotter Temps Drive Japanese Demand for Spot LNG from US
2024-09-11 - Above-average temperatures are forecast for most regions of Japan through early October, compelling the country to seek prompt LNG, potentially from the U.S., to cover extended summer-related electricity demand.
Freeport LNG’s Slow Restart Stokes Concern Over Supply Risk
2024-07-23 - The 15-mtpa Freeport LNG facility remains under the spotlight of the global market as it slowly resumes operations after pausing ahead of Hurricane Beryl’s arrival along the U.S. Gulf Coast.
No End in Sight: Biden’s Pause Has Far-reaching Consequences
2024-09-17 - Biden’s LNG pause is raising costs for LNG export projects, and its effects are far and wide in the U.S. LNG industry.
Pitts: Is the Permian-Mexico-Asia Gas Route at Risk?
2024-09-11 - Delayed construction of Mexican LNG projects hinders U.S. producers’ ability to improve access to thriving markets.