Page 10 - EurOil Week 03 2022

EurOil POLICY EurOil

Norway unveils latest APA rounds

NORWAY NORWAY has awarded 53 oil and gas licences unprecedented scrutiny of oil and gas develop-
in its latest Awards in Predefined Area (APA) ment in Norway. Norway’s new government,
Fewer licences were round, with the government hailing the result which took office in October, has continued the
awarded than last year, as evidence of “great interest” in the country’s policy of its predecessor, supporting continued
but the result was still exploration scene. oil and gas exploration while expanding invest-
declared a success. The offering includes 28 licences in the North ment in low-carbon technologies such as renew-
Sea, 20 in the Norwegian Sea and five in the Bar- ables, hydrogen and carbon capture and storage
ents Sea. Stakes were awarded to a total of 28 oil (CCS).
and gas firms ranging from large international Fewer licences were awarded this year than in
players to junior explorers. 15 companies were the APA round last year, when 61 licences were
offered licence operatorships. awarded. State-owned Equinor was the biggest
“Further exploration activity and new dis- participant, securing shares in 26 licences and
coveries are crucial to develop the Norwegian operatorships of 12.
petroleum industry further,” Norwegian Energy The company said it would invest 80% of
Minister Mjos Persen said in a statement. its exploration spending in opportunities near
“Awards of production licences [are] a mainstay existing infrastructure. It will be involved in
in facilitating a stable level of activity on the con- drilling 25 exploration wells this year, mostly in
tinent shelf. This award is an important contribu- the North Sea.
tion to maintaining future exploration activities Aker BP came in second, gaining shares in
and to make new, profitable discoveries.” 15 licences, seven of which it will operate. Var
APA rounds take place on an annual basis, Energi obtained 10, including five operated,
and are aimed at encouraging exploration at sites while Lundin also got 10, including five oper-
near to existing infrastructure, to provide oppor- ated. Other winners include Shell, Chrysaor,
tunities for low-cost development. In contrast, Concedo, ConocoPhillips, DNO, Idemitsu,
the country’s numbered rounds take place on a KUFPEC, Longboat, Lotos, M Vest, Neptune,
less regular basis and are aimed at encouraging OKEA, OMV, ONE-Dyas, Pandion, Petrolia
high-impact drilling in areas where limited pre- NOCO, PGNiG, Source, Spirit, Suncor, Sval,
vious exploration has taken place. TotalEnergies, Wellesley and Wintershall
The latest round result comes amid Dea.™

Poland tries to shield small businesses

from gas price spike

POLAND POLAND has slashed gas prices for small busi- reduce gas prices by a fourth for business cus-
nesses in an effort to shield them from the energy tomers, e.g. bakeries, hairdressers, service prem-
Poland gets most of its crisis unfolding across Europe. ises,” Polish State Assets Minister Jacek Sasin
gas from Russia. Consumers across the continent face higher reported on social media.
gas and power bills this year, following a sharp Warsaw has also introduced a new law to pro-
rebound in demand as coronavirus (COVID-19) tect public institutions such as hospitals from the
restrictions have been eased. A number of busi- gas price spike.
ness groups in Poland have warned that some Poland generates the bulk of its electricity
of their members may have to wind down their and heat from coal, but under its latest strategy
operations or file for bankruptcy this year as a it is carving out a greater role for natural gas. In
result. past years, gas has outcompeted coal in Europe,
On order of the government, Poland’s partly as a result of higher carbon costs, while
national gas company PGNiG announced on it also produces fewer emissions. But higher
January 14 it would cut gas prices for small busi- gas prices this year have at times reversed the
nesses by a quarter, as part of a series of measures situation.
to support vulnerable energy consumers. The cut Poland gets most of its gas from Russia, but
will apply until the end of February. also relies on LNG imports, domestic produc-
“I ordered PGNiG to take steps that will tion and other sources to meet demand. ™

P10 www. NEWSBASE .com Week 03 20•January•2022