Strong interest in Norway’s offshore oil licenses

Norway’s national oil agency on Wednesday said 44 companies have applied for 227 offshore oil exploration licenses near existing fields, a strong sign of interest as the country attempts to fight falling production.

Norway is a major oil and gas exporter and in 2003 began offering unexplored blocks near existing finds in the North Sea, the Norwegian Sea and the Barents Sea in what it calls Awards in Predefined Areas, or APA. The number of companies that applied by the Sept. 15 deadline was slightly below the record 47 set last year.

“The Norwegian shelf is not unaffected by world events, including the international financial crisis. In spite of this, however, most of the companies that applied in APA 2008 have also sent in applications this year,” said Sissel Eriksen, head of exploration at the Norwegian Petroleum Directorate. Norway’s oil production peaked at about 3.4 million barrels per day in 2001, and has now declined to about 2 million barrels per day.

The government wants oil companies to help shore up production by developing small finds near existing fields, which would sharply cut costs by linking new fields into already producing platforms and oil pipelines.

Tags:  Norway, oil companies