Norway is expanding the acreage in the Barents Sea and the Norwegian Sea, for which companies vying for licenses in mature areas can bid this year, the energy ministry of Western Europe’s largest oil and gas producer said on Wednesday.
Following the ministry’s announcement, the annual rounds of awards in predefined areas (APA), which give oil companies the opportunity to gain access to attractive acreage in the mature areas of the Norwegian shelf, will include a further 37 blocks—three in the northwest of the Norwegian Sea and 34 blocks in the eastern Barents Sea.
APA is Norway’s annual licensing round that covers the mature areas on the Norwegian Continental Shelf. After more than 50 years of exploration activity, the APA rounds currently cover most of the area that has been open to drilling and is available on the Norwegian continental shelf, the energy ministry said.
Companies can bid for the APA 2024 licensing round by September 3, 2024. The government aims to award the new production licenses in early 2025.
“We need further exploration to make new discoveries that in turn pave the way for investments to maintain production. This is important to safeguard jobs, income for the community and Europe’s energy security,” Energy Minister Terje Aasland said in a statement.
“Access to new, attractive acreage through the APA system is a pillar of the government’s petroleum policy,” the minister added.
Aasland received last week the field development plan for a new North Sea oil and gas field that will be tied back to an existing platform and is expected to cost $572 million (6.3 billion Norwegian crowns). This was the first such plan Norway has received this year.
Oil and gas companies plan to boost exploration activity and spending offshore Norway this year as Western Europe’s top oil and gas producer looks to maintain production and raise exports to the rest of Europe.
