Norway

Reporting on the latest developments from the Norway oil and gas sector

Norway

Norway’s Ministry of Petroleum and Energy announces licensing round for an expanded APA area

The recent announcement of Norway’s annual APA licensing was made by the Minister of Petroleum and Energy, with the process administered by the Norwegian Petroleum Directorate. Companies are invited to apply for opportunities around Norway in the North Sea, Norwegian Sea and Barents Sea.

Through the annual licensing round of APA (allocations in predefined areas), oil companies are given the opportunity to gain access to attractive exploration area on the Norwegian shelf.

After more than 50 years of exploration activities, the APA scheme covers most of the open, accessible area on this shelf. APA 2022 encompasses predefined areas with blocks in the North Sea, Norwegian Sea and Barents Sea.

“APA 2022 is an important part of our work to develop the petroleum industry,” explained Minister of Petroleum and Energy Terje Aasland. “The annual allocation of exploration areas is part of the predictable and stable framework conditions we have in Norway. This facilitates profitable investments, employment and future production.”

The proposal to announce APA 2022 was sent for public consultation with an April deadline. As part of the Revised National Budget 2022 negotiations, an agreement was reached between the Government parties and the Socialist Left Party not to include the three blocks 7426/10, 11 and 12 in the APA 2022.

The APA 2022 announced in June was expanded with 28 blocks in the Barents Sea. Applications can be submitted for all available blocks or parts of blocks within the available predefined areas. All licensing rounds on the Norwegian shelf are carried out within the area limits set by the Parliament as part of Norway’s ocean management plans.

“The petroleum sector is a highly productive industry that generates large revenues, value creation and employment,” continued Mr Aasland. “Oil and gas from the Norwegian continental shelf can help meet the world’s energy demand. Further exploration is important to ensure that Norway remains a safe and predictable supplier of oil and gas to Europe.”

The application deadline for this licensing round is set for Monday 12th of September 2022. After the application process has been completed, the aim is to grant new production licenses in the announced areas at the beginning of 2023.

Oil and gas in Norway

The Norwegian oil and gas industry is the country’s largest and most important industry for value creation, government revenue, exports and investments. In order to maintain activity in the longterm, continuity in the exploration activity is important. In mature areas, new discoveries are important for the capacity utilisation in production and transport facilities, and for management of time-critical resources.

The petroleum activities in Norway take place under strict requirements for health, environment and safety, as well as the protection of the external environment. Great emphasis is placed on ensuring coexistence with other industries.

The Norwegian Petroleum Directorate

Administration of APA 2022 is conducted by the Norwegian Petroleum Directorate, a governmental specialist directorate and administrative body. Established in 1972, the Directorate reports to the Ministry of Petroleum and Energy.

The primary objective of the Directorate is to contribute to the greatest possible value from the oil and gas activities to the Norwegian society, through efficient and responsible resource management. Operation of the Directorate’s mandate also considers health, safety, the environment and other users of the sea. Alongside license management, the Petroleum Directorate is also responsible for analysis, data management, communications and much more. n