Oil and gas company ConocoPhillips has received license extensions for the production licenses in the Greater Ekofisk Area offshore Norway from 2028 to 2048. Ekofisk, Norway's first commercial offshore oil discovery made in 1969, was brought online in 1971, half a century ago.
Granted by the Ministry of Petroleum and Energy (MPE), a license extension provides long-term operations and resource management aligned with the company’s long-term perspective on the Norwegian continental shelf.
Steinar Våge, President of ConocoPhillips Europe, Middle East and North Africa, said: "We are proud of our long-standing history in Norway, and we are pleased with the decision. Extended licenses in the Greater Ekofisk Area will contribute to sustainable and long-term investments, which again provides continued value creation, jobs and ripple effects. In addition, it ensures future energy supply security from the oil and gas province in the southwestern part of the North Sea."
Fields on the Norwegian continental shelf are required to operate with a valid production license where the operator and licensees enter into an agreement with the authorities, including relevant field activities. The authorities may require commitments, leading to increased oil recovery.
The existing production licenses 018, 018 B and 275 in the Greater Ekofisk Area were to expire on December 31, 2028.
However, the Norwegian Ministry of Petroleum and Energy has recently approved an extension through 2048.
"Today, this provides a potential for extending Ekofisk's lifetime to nearly 80 years. The procedure to review licenses in advance of expiration date provides the involved parties predictability, which again ensures safe and efficient operations," ConocoPhillips said.
"With the lifetime extension, the government acknowledges the significant remaining potential for resource development and new projects in the Greater Ekofisk Area. Also, the area is an important hub for the processing and transport of resources from many other fields in the North Sea," ConocoPhillips explained.
"After more than 50 years of activities, we extend our thanks to the authorities’ and governments’ trust in our operations, including the sound collaboration with our license partners. This milestone is a recognition of our work and long-term plans for continued development, aligned with the company’s vision first to come, last to leave.
"We continue to build on our HSE culture and ability to manage resources with new knowledge and technology, and we are finalizing the plan for development and operation of the Eldfisk North Project, expected to be submitted shortly. An extension of the production licenses is a premise for seeking approval for the project’, said Jan-Arne Johansen, ConocoPhillips General Manager of Operated Assets Europe.
The license partners in the Ekofisk Area are ConocoPhillips Skandinavia AS (operator with an ownership interest of 35,11 %), TotalEnergies EP Norge AS (39,896 %), Vår Energi AS (12,388 %), Equinor Energy AS (7,604 %) and Petoro AS (5 %).