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Norwegian licensing round breaks records

Oilfield Technology,


After the Skrugard, Norvarg, and Havis finds of last year, levels of exploration interest are set at a high level; drilling for plays on the Arctic frontier is looking to be a promising, if potentially risky, opportunity.

37 companies sent proposals to the Norwegian government for a record breaking 181 of the 228 exploration blocks originally nominated. Many of the industry’s big hitters have moved in to try and secure contracts: Statoil, Shell, ConocoPhillips, Eni, Total and Lundin Norway are just some of the major operators interested in these blocks. Amongst the more newly established companies looking for a piece of the action are: Faroe Petroleum, Spring Energy, Front Exploration, and Rocksource.

Ola Borten Moe, the Norwegian Oil and Energy Minster stated that the intense interest in these northern blocks “confirms that the Barents Sea is an exciting and internationally attractive petroleum province” which could represent major opportunities for the region.

Interest in the area looks set to continue, as proposals to make available newly demarcated areas in the Barents are to be put before the Norwegian parliament in 2013. The licenses from the current round are scheduled to be awarded in the first half of next year.

Despite the possibility of large plays to be found in the Arctic region, operating in this zone is not without its risks. Treacherous weather conditions, and temperatures often reaching well below freezing all increase the risks of operating in the Arctic; they also make any potential spills or other accidents far harder to clean up. These additional risks, and the extreme fragility of the regional ecosystem, have set many environmental groups firmly against operations in the area.

Read the article online at: https://www.oilfieldtechnology.com/exploration/24012012/norwegian_licensing_round_breaks_records/

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