Denmark Invites Oil Companies to 6th Licensing Round
The Danish Energy Authority has published the terms of the new oil/gas licenses in the Danish part of the North Sea. Oil companies are invited to send in tenders by November 1, 2005.
The areas of the 6th Licensing Round are placed partly in the Central Graben where the majority of the Danish fields have been found until now and partly in the areas further east where other oil discoveries have been made.
Though exploration activities have now been ongoing for almost 40 years, assessments made by the Danish Energy Authority show that the area holds considerable amounts of oil and gas still to be found.
As in previous rounds the Danish State will be a partner in the new licenses with a share of 20% leaving 80% for the oil companies. In the past licensing rounds DONG has been partner on behalf of the Danish State. This role will now be handled by a new national unit, which will contribute to the exploration activities and have part in the proceeds when oil and gas is found.
In 2003 the Danish taxation regulations of oil/gas licenses were changed in order to ensure the Danish State a higher revenue from the North Sea. Yet the Danish licensing terms are still favorable when oil companies consider where to make future investments in exploration activities. When assessing the tenders in November the Danish Energy Authority will amongst others attach importance to the amount of wells the oil companies plan to drill in order to locate the presence of oil and gas in the Danish subsoil.
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