Norway’s government has offered a record 48 companies stakes in 65 new production licenses in its 2013 Awards in Predefined Areas (APA 2013) licensing round.
The move sets a record, both in the number of production licenses offered and the number of companies involved.
The 65 production licenses are in the North Sea (38), Norwegian Sea (19), and Barents Sea (8). Of the 48 companies offered shares in licenses, 29 have been offered operatorships.
Norway’s Minister of Petroleum and Energy, Tord Lien, said many of the awards were in “some of the most well-established exploration areas on the Norwegian Shelf.”
Norwegian oil giant Statoil welcomed the move. It said: “Statoil believes that the mature areas of the NCS still offer exciting exploration opportunities.”
However, a recent report by Wood Mackenzie said record levels of spending in Norway's upstream oil and gas industry were driving up costs,impacting economic margins of a number of projects.
In a bid to avoid the sector from overheating, the Government announced Norway's first petroleum tax increase in 20 years.By reducing the capital uplift allowance, the Government hopes to ensure that operators focus more on controlling costs.
Read more: Norway buoyant, but costs rise - http://www.oedigital.com/component/k2/item/4751-norway-buoyant-but-costs-rise
The Norwegian Petroleum Directorate has also commented on the high cost levels. Director general Bente Nyland said: “Concerns over the cost level and oil prices must not prevent us from making decisions that will secure our income base for many years to come.”
The latest round offered for license a total 103,029sq km, divided into 377 blocks, or parts of blocks. The acreage in the Norwegian Sea was extended by six blocks, in the area surrounding Aasta Hansteen, compared to APA 2012. In addition, acreage relinquished within the APA area during the last year was included in the acreage the companies could apply for in this round.
Centrica, Statoil, and Faroe Petroleum, were each offered the largest number of shares in licenses, 10 each.
Statoil’s 10 production license interests cover blocks in the North Sea, Barents Sea, and Norwegian Sea. Statoil was offered operatorship in seven licenses. These include 40% ownership and operatorship in PL765, a new license in the Hammerfest basin.
Three of the license interests offered to Centrica are as operator. Two of Faroe’s offered license interests are operatorships.
To see a full list of all the awards offered see:http://www.regjeringen.no/upload/OED/pdf%20filer/OG/TFO2014/TFO_2013_Arbeidsprogram_engelsk.pdf
To view a map of the licenses see:http://www.regjeringen.no/upload/OED/pdf%20filer/OG/TFO2014/TFO_2013_kart_engelsk.pdf
Offers to 29 operators (number of operatorships in brackets):
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