Norway's Barents Sea Round Stimulates Interest

Norway's energy ministry has offered ten new production licences in the 23rd licensing round on the Norwegian continental shelf, despite the low oil prices.

Minister Tord Lien said: "Today, we are opening a new chapter in the history of the Norwegian Petroleum industry. For the first time in twenty years, we offer new acreage for exploration. This will contribute to employment, growth and value creation in Norway." 

All ten are in the Barents Sea, the "emerging giant" of the country's continental shelf. The offers have been issued following the authorities’ assessment of applications from 26 companies.

Statoil and Lundin each won 5, but there was also smattering of interest from international oil companies such as ConocoPhillips and Chevron from the US; Centrica, Cairn and Tullow from the UK; Austria's OMV; Russia's Lukoil and DEA; Polish state PGNIG; and Japan's Idemitsu who secured stakes in one or more licenses.

Statoil said it was "very happy" with the result. "Gradually opening up new areas is crucial for us to maintain profitable and high-level production up to and beyond 2030,” said Arne Sigve Nylund, Statoil’s executive vice president fo development and production Norway (see picture).

Norway's Exploration Director Sissel Eriksen said she was "very pleased" with the results and "eagerly awaiting the result of the first exploration well." 

In terms of operatorships, Statoil will operate four of the licences, Lundin three, while Centrica, Det Norske, and Cairn Energy-owned Capricorn Norge each pick up one operatorship - for a total of the 10 licences (spanning 40 blocks).

Three production licences have been awarded in the new area in the southeastern Barents Sea. The winners will have binding work programmes that include a requirement for four exploration wells within three years in the three production licences, and Eriksen is hopeful that the first exploration well will be in place as early as next year.