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Prices spur interest in Norwegian offshore
Record crude oil prices and technological advances have spurred interest among oil companies for mature oil provinces off Norway, the oil ministry said Sept. 30.
In 2003, Norway began to offer licenses for unexplored blocks near existing oil fields, in what it calls Awards in Predefined Areas.
The Nordic country hopes small finds will be developed and maintain production that makes Norway the world’s third largest exporter, after Saudi Arabia and Russia.
Oil Minister Thorhild Widvey said the number of oil companies competing for those blocs had almost doubled in two years to 29, as the application deadline expired Sept. 30. Blocks offered in North, Norwegian, Barents seas The ministry offered 192 whole or partial blocks in the North Sea, the Norwegian Sea and the Barents Sea. It plans to award the blocks in December.
Norway has been urging oil companies to explore mature areas, as well as to push north to Arctic waters, to maintain the country’s production capacity of about 3 million barrels per day of oil, plus natural gas.
“It is important to continue this focus in the coming years,” Widvey said.
Oil ministry spokeswoman Sissel Edvardsen said high oil prices, currently over US$60 per barrel, were a key factor in stimulating oil company interest. Infrastructure, technology key to profits “But it is also the locations near existing fields and better technology to get up more oil that can make it profitable,” she told The Associated Press.
Fields that can be developed by linking them to existing oil platforms, rather than having to build new structures, dramatically cuts the cost of offshore development.
Among companies applying for blocks are: A/S Norske Shell, ConocoPhillips Skandinavia AS, Eni Norge AS, Esso Norge AS, Marathon Petroleum Norge AS, Petro-Canada UK Ltd., Talisman Energy Norge AS and Total E & P Norge AS.
—The Associated Press
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