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Sunday, June 28, 2020

Norway Expanding Arctic Oil Drilling Operations

Norway needs 
new oil
discoveries 
in the next 
few years
to maintain 
employment
and its oil 
industry
supply 
chain. 

Access to new 
exploration areas
on the Norwegian 
continental shelf
are planned, 
according to 
Petroleum and 
Energy Minister 
Tina Bru.

Norway is 
currently 
reducing its oil 
production 
because of the 
COVID-19 slump 
in oil prices. 

But after 
the Johan 
Sverdrup, 
and the 
planned Johan
Castberg oilfield, 
reach peak 
production 
in a few years, 
Norway’s 
oil production 
is set for a 
natural decline 
after 2023.

The Norwegian 
Petroleum Directorate 
(NPD) claims Norway 
has produced 48% 
of the recoverable 
resources on the 
continental shelf. 

Norway recently 
announced the 
annual licensing 
round for
oil and gas 
exploration in 
mature areas 
on the shelf,
expanding the 
total acreage
available by 
36 blocks, west 
of the Norwegian 
Sea. 

Awards in Predefined 
Areas (APA) are 
announced every year, 
for the mature parts 
of the continental shelf,
with known geology, 
and good infrastructure 
already in place.


Norway is 
also looking 
to offer 136 blocks 
for oil and gas
exploration in the 
licensing round 
for less explored 
areas on its shelf, 
including 125 blocks 
in the Arctic Barents 
Sea that are currently 
not available for drilling.   

So the 25th 
licensing round
in Fall 2020, 
will include
frontier parts 
of the Norwegian 
Continental 
Shelf (NCS).

Norway’s oil ministry
believes the frontier
regions are most likely 
to host large new 
discoveries.

The ministry proposes 
nine frontier areas 
for exploration, 
including eight areas 
in the Barents Sea, 
and one area in the 
Norwegian Sea.