The Norwegian Ministry of Petroleum and Energy is offering 83 production licenses on the Norwegian continental shelf in the Award in Pre-Defined Areas 2018 (APA 2018).
âThis is the largest licensing award on the Norwegian continental shelf. 53 years after the first licensing round, this new record confirms the industry’s belief in continued value creation and activity in Norwayâ?, says Minister of Petroleum and Energy, Mr. Kjell-Børge Freiberg (FrP).
The 83 production licenses are distributed over the North Sea (37), the Norwegian Sea (32) and the Barents Sea (14). 33 different oil companies, ranging from the large international majors down to smaller domestic exploration companies, are awarded ownership interests in one or more production licenses. 21 of these companies will be offered operatorship. The licenses are awarded with work-programme commitments or as additional area to such licenses.
âAwarding prospective acreage is a central element in the Government’s policy. It enables different oil and gas companies to make the discoveries we need. I have awarded several licenses to medium-sized companies and to new companies on the NCS. The increased diversity of companies is important to ensure employment and Government revenuesâ?, continues Minister Kjell-Børge Freiberg (Frp).
The APA licensing rounds cover the most explored areas on the Norwegian shelf. One of the primary challenges in mature areas is the expected decline in discovery size. Minor discoveries will not be able to carry standalone developments, but may have good profitability when they can exploit existing and planned infrastructure.
