26 apply for Norway's 23rd round

OE Staff Dec 4, 2015

A total of 26 oil and gas companies applied for rights to explore acreage in the Norwegian and Barents Seas in Norway’s 23^rd licensing round this week.

This year’s licensing round comprises of 57 announced blocks or parts of blocks, of which three are located in the Norwegian Sea and 54 in the Barents Sea. Thirty-four or nearly 60% of the blocks are in the newly opened area in the southeastern Barents Sea, and many of the applications target this acreage.

"It is gratifying to see that so many competent companies want to explore in new acreage during a time when we are experiencing low oil prices and 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 at the NPD said.

The blocks are located in frontier areas, and that more exploration is needed in order to clarify the resource potential, the NPD said.

Last year, a total of 36 companies applied for production licenses in the 22^nd licensing round. APA 2015 experienced a great deal of interest, with 44 companies submitting applications. This can indicate that the smaller players have prioritized APA ahead of the 23^rd licensing round this year.

26 companies have 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.

"It is exciting that new companies want to enter the Norwegian Shelf. The authorities have worked for many years to facilitate the establishment of new players here, as we are certain that this can contribute to enhanced value creation."

The work of reviewing all the applications starts now. The 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 emphasized.

The announced blocks are subject to both fishery and environment related conditions, which are described in the announcement. In order to ensure a good evaluation of the applications, the announced blocks have been mapped by the NPD. The Ministry of Petroleum and Energy plans to award new licenses in the 23^rd licensing round before summer 2016.