Nine new production licenses

The Company North Energy AS is offered the operatorship for the Vågar field outside Sandessjøen, just south of the Arctic Circle in the Norwegian Sea. North Energy is based in Alta in Finnmark County, and has several northern Norwegian companies as investors.

- It is positive for the diversity on the Norwegian Continental shelf that North Energy has proved competitive for operatorships in the 20th licensing round. Originating in northern Norway, North Energy can make an important contribution to developing petroleum activity in the region, says Minister of Petroleum and Energy Terje Riis-Johansen in a press-release from the Ministry.

According to the local newspaper Altaposten in the hometown of North Energy, Alta, the company has a 40 percent ownership at the field, sharing it with the companies E.ON Ruhrgas, Dana and Noreco, each with a 20 percent ownership.

North Energy is just two years old, but says they will work towards playing a leading role in the development of future oil and gas activities in the north. The company also says on its web-site that it is a goal to develop a supply industry based on northern Norwegian conditions and local expertise, with its particular advantages.

According to the Ministry press-release the awards in the 20th licensing round comprise nine new production licenses in the Barents Sea and 12 new production licenses in the Norwegian Sea.

The decision process on the 20th licensing round has run parallel to the work with the new environmental and resources management plan for the Norwegian Sea. This management plan will be put forward soon and the awards are in line with the new management plan.

- It is important to impose strict conditions relating to environmental and fisheries concerns to the companies receiving awards in the 20th licensing round. Block-specific conditions with among others time restrictions on exploration wells and seismic surveys will balance environmental, fisheries and petroleum concerns in a good way, said Riis-Johansen when presenting the awards for the 20th licensing round.

The awards are in line with the recommendation from the Norwegian Petroleum Directorate.

For the Barents Sea, the most interesting will be to see the results from test-drilling furthest to the west and north. These exploration provinces have not previously been explored.

Exploration director Sissel Eriksen Norwegian Petroleum Directorate says in a press-note the Directorate believes that it is important to maintain continuous activity levels in the Norwegian Sea and the Barents Sea, and the awards in the 20th round will contribute to this.