The Danish Energy Authority to Issue 14 New Exploration Licenses

Flemming Hansen, the Minister for Transport and Energy, intends to issue 14 new licenses as a result of the 6th Licensing Round for oil and gas exploration and production, according to a statement presented today to the Energy Policy Committee of the Danish Parliament. Flemming Hansen, the Minister for Transport and Energy, says:

"I am very pleased with the results of the licensing round. In general, the applications and work programs are of high quality and based on comprehensive preliminary studies. This will lay the groundwork for ensuring that oil companies will continue to explore for oil and gas in the Danish sector of the North Sea. It also paves the way for the discovery of new deposits so that we can uphold the production of oil and gas for many years to come."

According to the Minister's statement, the 14 licenses cover an area of 3,490 square kilometers. This equals about one-fourth of the area offered for licensing, which comprises all the unlicensed areas in the western part of the North Sea. This is also the area where oil companies have focused their interest in recent years and where all the producing fields are located.

The exploration costs associated with the 6th Round licenses are estimated to total DKK 1.3 billion over the coming six-year license term.

The Danish North Sea Fund will be awarded the State's 20% share of the new licenses.

The licenses will be issued when the Energy Policy Committee of the Danish Parliament has responded to the statement.