Twenty six companies apply for acreage in Norway’s latest licensing round
STAVANGER, Norway -- The application deadline for production licenses in Norway’s 23rd licensing round expired on Wednesday, with 26 companies applying for exploration acreage.
This licensing round comprises 57 announced blocks or parts of blocks, three of which are in the Norwegian Sea and 54 in the Barents Sea. Thirty four of the announced blocks are situated in the newly opened area in the south-eastern Barents Sea, and many of the applications target this acreage in particular.
"It is good to see that so many competent companies want to explore in new acreage during a time when we are experiencing low oil prices and substantial cost cuts. This shows that the companies recognize opportunities and the potential of finding oil and gas in these new areas," Sissel Eriksen, exploration director in the NPD, said.
She notes that the announced blocks are located in frontier areas, and that more exploration is needed in order to clarify the resource potential.
Applications
A total of 36 companies applied for production licences in the 22nd licensing round. APA 2015 garnered a great deal of interest, with as many as 44 companies submitting applications. This can indicate that the smaller players have prioritized APA ahead of the 23rd licensing round this year.
Twenty six companies applied for production licenses, individually or in groups:
- A/S Norske Shell
- BP Norge AS
- Capricorn Norge AS
- Centrica Resources (Norge) AS
- Chevron Norge AS
- ConocoPhillips Skandinavia AS
- DEA Norge AS
- Det norske oljeselskap ASA
- DONG E&P Norge AS
- E.ON E&P Norge AS
- Edison Norge AS
- Faroe Petroleum Norge AS
- Idemitsu Petroleum Norge AS
- INPEX Norge AS
- KUFPEC Norway AS
- Lukoil Overseas North Shelf AS
- Lundin Norway AS
- Moeco Oil & Gas Norge AS
- OMV (Norge) AS
- PGNiG Upstream International AS
- Pure E&P Norway AS
- RN Nordic Oil AS
- Spike Exploration AS
- Statoil Petroleum AS
- Tullow Oil Norge AS
- Wintershall Norge AS
The list reveals a broad player landscape with mostly large and medium-sized companies, but also a few smaller players. Two of the companies, INPEX and Kufpec, are newcomers this autumn. Kufpec also applied in this year's APA round.
Expertise
The work of reviewing all the applications will start now. The Norwegian Petroleum Directorate (NPD) is looking for the companies with the best knowledge, the best applications and the best strategy for exploring the areas.
Companies that are awarded licenses must have both technical expertise and a good understanding of the geology. Financial strength and experience are also factors that are emphasized.
The announced blocks are subject to both fishery-related and environmental terms and conditions. In order to ensure a good evaluation of the applications, the announced blocks have been mapped by the NPD.
Norway's Ministry of Petroleum and Energy plans to award new licenses in the 23rd licensing round sometime before summer 2016.
