Page 14 - EurOil Week 03 2021

EurOil POLICY EurOil

Norway hands out 61 licences

in latest APA contest

NORWAY NORWEGIAN authorities have awarded rights Var Energi, which secured five operated and
to some 30 companies for exploration in its latest five non-operated permits. Half were in the
Norwegianinvestment licensing round for developing mature areas of Norwegian Sea, and the rest in the North and
has held firm despite the country’s shelf. Barents seas. Aker BP also won eight operated
dire warnings after the Some 61 offshore exploration licences were and two non-operated licences, mostly in the
COVID-19 crisis swept issued in the 2020 Awards in Predefined Areas North Sea.
across the world. (APA) contest, the Norwegian Petroleum and Norway’s DNO bagged four operated and six
Energy Ministry said on January 19. APAs take non-operated licences in the North and Norwe-
place every year and invite companies to bid for gian seas, while Neptune Energy obtained six.
areas that are well-explored but may still yield Germany’s Wintershall Dea grabbed 16, includ-
discoveries. ing four operated ones, and Poland’s PGNiG col-
In contrast, the 2019 APA round led to the lected four non-operated permits.
award of 69 licences to 28 oil and gas companies. Norway also launched its long-awaited fron-
But the offering in that round was also much tier round in November, offering rights to 136
greater. blocks, mostly in the Barents Sea. These num-
The APA 2020 competition kicked off in June. bered contests occur less frequently and offer
The ministry said 34 licences had been issued for licences in areas where infrastructure is scarcer
North Sea exploration, along with 24 for activi- and drilling risks greater. But explorers can
ties in the Norwegian Sea and three in the fron- potentially be rewarded with large discoveries.
tier Barents Sea.
“Even after decades of activity, there are still Norwegian investment holds firm
opportunities in these areas,” the ministry said. Dire predictions were made about future invest-
“Due to new technology and a multitude of new ment off Norway after the coronavirus (COVID-
players, I believe we will see new discoveries in 19) pandemic swept across the world. But these
the areas available in this year’s APA round,” predictions have not materialised, in large part
Norwegian Petroleum Minister Tina Bru said in thanks to generous tax breaks granted by the
a statement. government last summer.
The Norwegian Petroleum Directorate The Norwegian Oil & Gas Association
(NPD) said the round had attracted a diverse (NOGA) halved its forecast for offshore invest-
mix of players, from junior companies to major ment in a study in April. But less than a year later,
international producers. Norwegian state oil Statistics Norway estimates a decline in spending
firm Equinor reported winning 10 operated and of only 4.2%. Capital expenditure is anticipated
seven non-operated licences. to reach NOK179bn ($19bn) in 2021, and addi-
“Due to their location, these resources can tional projects could be announced.
often be realised with high profitability and cre- The tax package provided some $11bn in
ate considerable value for society, and they can relief to operators to encourage them to approve
be produced with a low carbon footprint per new projects by the end of 2022. It is estimated
barrel,” the company said. to have lowered the breakeven oil price for these
Among the other victors were Eni-owned projects by $10 per barrel on average.™

P14 www. NEWSBASE .com Week 03 21•January•2021