🚀 ProPicks AI Hits +34.9% Return!Read Now

Norway plans to expand Arctic oil and gas drilling in new licensing round

Published 17/03/2022, 15:31
© Reuters. FILE PHOTO: A fishing boat returns from a trip to the Barents Sea to the tiny port of Sommaroya, north Norway January 31, 2013. REUTERS/Alister Doyle
BP
-

By Terje Solsvik

OSLO (Reuters) -Norway will offer new licenses to drill for oil and gas in its oceans, including previously unexplored acreage in the Arctic, the government said on Thursday, welcome news to Western nations keen to reduce their dependence on Russia.

"Access to new, attractive exploration acreage is a pillar in the government's policy for further development of the petroleum industry," Minister of Energy and Petroleum Terje Aasland said in a statement.

"New discoveries are crucial for ensuring jobs, value creation and production," he said.

Environmental campaigners strongly oppose to Norway's oil and gas drilling, especially in the Arctic's fragile ecosystem, arguing it contributes to global warming, but a broad majority in parliament said exploration will continue.

The energy ministry said it had added stakes in 31 exploration blocks in the Arctic Barents Sea that oil firms can apply for in the latest round, on top of other acreage in the Barents Sea as well as the North Sea and the Norwegian Sea.

The blocks are adjacent to mature areas that have been drilled in the past and have relatively well-known geology or existing infrastructure, allowing companies to develop new discoveries quickly.

Norway is Europe's second largest petroleum producer after Russia, pumping around 4 million barrels of oil equivalent per day, and is forecast to increase its output by some 9% by 2024.

The pre-defined areas have been expanded gradually over the years and now cover much of the acreage opened for petroleum business off Norway, including large swathes of the Norwegian section of the Barents Sea.

© Reuters. FILE PHOTO: A fishing boat returns from a trip to the Barents Sea to the tiny port of Sommaroya, north Norway January 31, 2013. REUTERS/Alister Doyle

In last year's round Norway awarded stakes in 53 licenses to 28 companies, with Equinor, Aker BP (LON:BP), Lundin Energy and Eni's Norwegian subsidiary Vaar winning the most.

The energy ministry said it plans to announce awards for this year's round in January 2023.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.