Sharp Fall In Applications For Norway's Arctic Oil Permits

OSLO, Dec 5 (Reuters) - Norway's attractiveness as an oil region took a hit on Tuesday when energy authorities said 11 oil firms applied for stakes in exploration blocks off Norway in its latest oil licensing round, less than half the number that applied in the previous round.
A disappointing drilling campaign this year in the Arctic Barents Sea - where oil companies did not make a single significant discovery - was the main factor discouraging oil companies from taking part in the 24th licencing round, industry experts said.
"Clearly the results of the exploration campaign in the Barents Sea this year have impacted the number of companies applying," said Helge Andre Martinsen, an analyst at DNB Markets.
"Overall exploration results this year have been extremely disappointing: dry wells and less volumes than expected," he added, citing in particular Statoil's Korpfjell prospect, for which expectations were high.
"The only thing that can turn this around is the upcoming Barents Sea campaign in 2018," he said.
Oil and gas are the Nordic country's largest industry, accounting for 12 percent of GDP. To replace existing output, new discoveries must be made and authorities expect them to be in the Barents Sea. After 2022, Norway has no major oil projects in the pipeline.
The number of firms applying for licences this year compares with 26 companies seeking drilling permits in the previous round in 2015. If all 11 applicants are awarded acreage, the 24th round would still be at a 15-year low in terms of participants.
Statoil, the largest explorer and producer off Norway, plans to drill five or six wells in the Barents Sea next year. Earlier on Tuesday it announced a $6 billion development plan for the Johan Castberg field in the Arctic.
The oil and energy ministry said the latest licensing round is mainly about getting exploration going in key areas in Norway's least explored areas. Awards will be made in June 2018, it said in a statement.
In this licensing round, which focused on the Barents Sea, applicants included Statoil, Aker BP, Lundin Petroleum, Shell, OMV, Centrica, DEA and Wintershall.
Idemitsu, KUFPEC and RN Nordic Oil, a subsidiary of Rosneft, were also on the list of applicants.
Those that did not apply but applied in previous years included Chevron, ConocoPhillips, Lukoil , Tullow Oil and PGNiG.
The limited interest in the round does have a positive side for some of the firms taking part. "For Statoil, Aker BP and Lundin Petroleum, it is less competition," said Martinsen.
The government offered a total of 102 exploration blocks, consisting of 93 blocks in the Barents Sea and nine in the Norwegian Sea, although it is expected to narrow this down based on the interest expressed by oil firms.
(Additional reporting by Gwladys Fouche, Henrik Stolen and Lefteris Karagiannopoulos, writing by Terje Solsvik and Gwladys Fouche; Editing by Adrian Croft)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Shell Posts Record 2022 Profit
- Energy Services Sector Will Grow To $1 trillion In 2025
- Maritime Security Report Shows Incident Trends Down YoY
- Big Oil Shareholders Biggest 2022 Winners With Massive Payouts
- Will A New Iran Nuclear Deal Be Agreed to in 2023?
- Westwood: Several Macroeconomic Factors Make 2023 Unpredictable
- New SPR Bill Passes House
- What Bad Habits Should Oil and Gas Jobseekers Avoid?
- Top Headlines: Valaris Employee Reported Missing from Rig
- Big Oil Saw Record $199Bn Profits In 2022 But 2023 Will Be Different
- Governor Issues Disaster Declaration for Southeast Texas
- USA Drops 3 Gulf of Mexico Rigs
- Exxon Building Largest Renewable Diesel Plant In Canada
- Biden To Support ConocoPhillips Alaska Oil Project, Defying Greens
- World Still Waiting to See What China Reopening Means
- USA Oil and Gas Employs Almost 1 Million in 2022
- EU Considers Capping Russian Fuel Prices at $100
- Valaris Employee Reported Missing from Rig
- Louisiana, Texas To Gain Thousands of Energy Jobs At Start of 2023
- Is the USA Shale Boom Over?
- Gasoline and Diesel Prices Expected to Fall
- Higher Oil Prices Have Not Led to More Exploration
- Shell Finds Gas In Pensacola High-Impact Well Off UK
- Talos Makes Two Commercial Discoveries In Gulf Of Mexico
- Iran Oil Gushes Into Global Market
- Will Oil Hit $100 Per Barrel in 2023?
- Eni, Chevron Make Significant Gas Discovery Off Egypt