Monday 13 March 2017

The Norwegian government intends to offer as many as 93 new exploration blocks in the frontier Barents Sea under the country’s next licensing round to be launched later this year.

A total of 102 tracts - also including nine in the Norwegian Sea - would be up for grabs under the proposal for the 24th round that was issued for consultation by the Petroleum & Energy Ministry on Monday.

The acreage acreage is set to be offered to oil companies in the second quarter, with a deadline for bids in the fourth quarter of this year.

It follows a block nomination process carried out last year in which 22 companies proposed tracts they wished to see included in the round.

The ministry is seeking responses under the consultation exercise by 2 May.

The country’s recently appointed Petroleum & Energy Minister Terje Soviknes has vowed to continue with the Conservative-led coalition government’s aggressive policy of opening fresh exploration acreage in order to make new discoveries to reverse a production decline from mature fields.

The Barents is seen as the most prospective region given it is estimated to hold more than half of the country’s undiscovered hydrocarbon resources, with the south-east Barents opened up for drilling in the previous round.

However, exploration in the eco-sensitive Arctic region is facing strong opposition from environmentalist groups, with the government facing a legal action over claims block awards in the 23rd round were unconstitutional.