Page 15 - EurOil Week 25

EurOil POLICY EurOil

Norway kicks off next

licensing round

NORWAY NORWAY has kicked off its latest awards in a less explored areas where investment is naturally
pre-defined areas (APA) licensing round, invit- riskier but can yield greater discoveries. But a
Norway is offering less ing companies to bid for an extra 36 oil and gas timeframe for the contest is not yet in place, with
new acreage than in blocks, its energy ministry said on June 19. delays caused by environmental concerns, espe-
previous rounds. Norway holds APA licensing rounds each cially about drilling in the Arctic.
year, in which new acreage in already well-ex-
plored areas is put on offer. The latest addition Production
is relatively small compared to last year’s contest, Norwegian oil production was down 2.1%
when some 90 blocks were added to the pre-de- month on month in May at 1.74mn barrels per
fined areas. day (bpd), the Norwegian Petroleum Directorate
All of the newly included blocks are in the (NPD) reported on June 19. However, it was still
Norwegian Sea, with no additional ones in either 0.9% above forecast and 38.1% higher year on
the North or Barents seas. year, largely thanks to Equinor’s launch of the
“New discoveries are a prerequisite for long- giant Johan Sverdrup oilfield last autumn.
term employment, value creation and govern- Output is predicted to slide in June because of
ment revenues. Regular licensing rounds on the supply cuts imposed by the government to help
Norwegian Continental Shelf [NCS] are there- prop up global prices. Norway has committed to
fore a key element in our policy,” the ministry keeping its crude flow at just under 1.61mn bpd
said. this month, rising to 1.73mn bpd during the sec-
Finding more oil and gas in mature areas is ond half of the year.
key to ensuring that existing production and Norway’s gas production fell in May, mark-
transport capacity remains well utilised despite ing the fifth month of decline in a row. Suppli-
older fields seeing decline, it said. ers pumped 290.5mn cubic metres per day of
Companies have until September 22 to bid for gas during the month, 8.4% below the forecast
the offered acreage, for which authorities plan to and 12.4% less than in April. Output was down
award licences in early 2021. 15.4% y/y. While Norwegian gas is competitive
Norway’s previous APA round led to 69 in Europe, almost all suppliers have had to cut
licences being issued to 28 oil and gas companies. back this year in response to weaker demand
Preparation is also underway for the country’s caused by coronavirus (COVID-19) lockdown
next frontier round, which will offer acreage in measures and an economic slowdown. ™

Week 25 25•June•2020 www. NEWSBASE .com P15