Norway oil and gas exploration round attracts bids from 25 companies
Reuters
Published Aug 29, 2023 09:12
Updated Aug 29, 2023 10:30
By Nerijus Adomaitis
OSLO (Reuters) -Norway's latest offshore oil and gas exploration licensing round attracted bids from 25 companies, including Shell (LON:RDSa), ConocoPhillips (NYSE:COP), Aker BP (LON:BP) and Equinor, the energy ministry said on Tuesday.
Norway's annual award of new offshore acreage for drilling is central to the country's strategy of extending oil and gas production for decades to come, a policy that is fiercely opposed by environmental groups.
"Without exploration and new discoveries, we will neither be able to maintain production of oil and gas over time, nor further develop the petroleum sector and all jobs in the industry," Terje Aasland, the oil and energy minister, said in a statement.
In May, the energy ministry offered 92 new blocks to search for oil and gas in the Norwegian and the Barents Seas, in the so-called pre-defined areas (APA) exploration round.
In recent years, Norway has used APA rounds to significantly expand exploration on the Norwegian Continental Shelf, especially in the Arctic Barents Sea, despite protests over the impact that burning oil and gas has on the global climate.
The latest offer added 78 new blocks in the western part of the Barents Sea and 14 blocks in northwestern part of the Norwegian Sea to the already existing APA area.
The Norwegian Petroleum Directorate, in a separate statement, said almost all companies active on the Norwegian Continental Shelf had submitted bids, with increased interest in the Barents Sea. It did not say how many blocks companies had bid for.
Norway in January awarded 47 new permits to a total of 25 companies, concluding its 2022 licensing round.
Oil and gas companies can also apply for blocks offered in the previous APA rounds that have not been awarded, including in the North Sea.
Vaar Energi, majority owned by Eni, was also among the bidders in the round, as were DNO, OMV, Okea and Wintershall Dea.
The oil and energy ministry said it plans to announce the winners of new acreage in early 2024.
Get The App
Written By: Reuters
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.