Norway plans to expand Arctic oil and gas drilling

Norway's energy ministry said it had added stakes in 31 exploration blocks in the Barents Sea to the latest license round.

By Terje Solsvik, Reuters - March 17, 2022
A fishing boat returns from a trip to the Barents Sea to the tiny port of Sommaroya, in northern Norway on January 31, 2013. (Alister Doyle / Reuters File Photo)

OSLO — Norway will offer new licenses to drill for oil and gas in its oceans, including previously unexplored acreage in the Arctic, the government said on Thursday, welcome news to Western nations keen to reduce their dependence on Russia.

“Access to new, attractive exploration acreage is a pillar in the government’s policy for further development of the petroleum industry,” Minister of Energy and Petroleum Terje Aasland said in a statement.

“New discoveries are crucial for ensuring jobs, value creation and production,” he said.

Environmental campaigners strongly oppose to Norway’s oil and gas drilling, especially in the Arctic, arguing it contributes to global warming, but a broad majority in parliament said exploration will continue.

[Norway to supply more gas to Europe this summer]

The energy ministry said it had added stakes in 31 exploration blocks in the Arctic Barents Sea that oil firms can apply for in the latest round, on top of other acreage in the Barents Sea as well as the North Sea and the Norwegian Sea.

The blocks are adjacent to mature areas that have been drilled in the past and have relatively well-known geology or existing infrastructure, allowing companies to develop new discoveries quickly.

Norway is Europe’s second largest petroleum producer after Russia, pumping around 4 million barrels of oil equivalent per day, and is forecast to increase its output by some 9 percent by 2024.

The pre-defined areas have been expanded gradually over the years and now cover much of the acreage opened for petroleum business off Norway, including large swathes of the Norwegian section of the Barents Sea.

In last year’s round Norway awarded stakes in 53 licenses to 28 companies, with Equinor, Aker BP, Lundin Energy and Eni’s Norwegian subsidiary Vaar winning the most.

The energy ministry said it plans to announce awards for this year’s round in January 2023.