Norwegian Ministry Prequalifies Faroe Petroleum
Faroe Petroleum, which pursues exploration, appraisal, and undeveloped field opportunities in the Atlantic Margin and the North Sea, has been prequalified as a license-holder on the Norwegian Continental Shelf by Norway's Ministry of Petroleum and Energy.
The Norwegian authorities prequalify both license holders and operators in an effort to encourage new oil companies to pursue oil and gas activities on the Norwegian Continental Shelf. The prequalification system is meant to give oil companies the opportunity to prove their suitability for participation on the shelf before the company invests resources on business opportunities.
Faroe said that it is actively pursuing plans to participate in the upcoming 2006 APA Round, announced by the Norwegian Energy Minister in February. Applications for the bid round are due by September 29.
In February, Faroe opened offices in Stavanger, Norway. The company contends that it entered Norway because it views the country as an under-explored province with vast potential for finding new resources an outstanding exploration success rate. With an estimated 21 billion barrels of undiscovered resources, Norway also recently implemented a tax structure designed to incentivise exploration.
"We are delighted to have pre-qualified well ahead of the 2006 APA Licensing Round submission deadline and so soon after establishing our new subsidiary and team in Norway," says Graham Stewart, Faroe's chief executive. "With the successful hiring of such a competent team and pre-qualification, Faroe is on track to play an important role in exploring for and exploiting undiscovered and undeveloped resources in Norway."
Stewart added that the Norwegian Continental Shelf offers Faroe a "perfect next stage" as the company develops its asset portfolio. "Our knowledge and experience in this important oil and gas province are second to none and we look forward to an exciting time ahead," he said.
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