Norske Shell plans to reduce its acreage off Norway.
The company will offer interests in 11 licenses in the North Sea, off mid-Norway, and in the Barents Sea.
The main objective is an exchange of acreage with other Norwegian operators, although cash bids from other companies seeking a foothold in Norwegian waters is not ruled out.
The offer drew immediate interest from a number of Norwegian operators, but Shell said it must obtain permission of its partners in the licenses on offer before detailed information can be released to potential bidders.
Paul Skinner, managing director of Norske Shell, said the decision to trim the company's acreage inventory reflects a strategy of concentrating on areas where Shell can add value.
"We recognize that certain companies may be better placed to extract value from the licenses we plan to divest," he said.
The deal is to be complete in the second half of this year.
Meantime, a more detailed study has doubled Den norske stats oljeselskap AS's estimate of undiscovered oil and gas resources in the Norwegian North Sea.
SHELL PACKAGE
Shell said the licenses constitute "an attractive package," including discoveries and prospects that may have an even higher value to other companies.
The package includes a 100% interest in PLO34 containing Block 30/5, which has prospects that could be developed as satellites to Oseberg field in Blocks 30/6 and 30/9. Shell has no working interest in Oseberg.
Eight of the licenses hold discoveries with Shell working interests of 10-25%. They include a 20% interest in PL102 (Block 25/2), which contains part of Froy field, and a 25% interest in PL062 (Block 6507/11) in the Haltenbanken area, where Saga Petroleum operates the 3.8 tcf Midgard gas/condensate discovery.
Shell owns interests in 25 Norwegian licenses and is involved in development of the first stage of Troll gas field in the North Sea and Draugen oil field on Haltenbanken.
RESOURCE STUDY
The Statoil survey shows there are 5.9 billion bbl of crude oil and 31.95 tcf of gas still to found in the Norwegian North Sea. Those figures compare with 2.39 billion bbl of crude and 16.77 tcf of gas in Statoil's 1989 survey.
Statoil said it devoted more resources to its annual study of undiscovered resources off Norway so it could balance its exploration effort between Norwegian and foreign prospects.
The survey used new geological modeling techniques and included new seismic acquisition and interpretation.
The state company's figures are for internal use only. Official government estimates are based on an annual survey by the Norwegian Petroleum Directorate, which traditionally takes a more conservative view of resources. The latest NPD estimates are expected to be published in August.
Statoil's survey shows remaining. proved reserves in the Norwegian North Sea are 11.43 billion bbl vs. last year's 10.42 billion bbl. Proved remaining gas reserves are almost unchanged at 76.98 tcf, compared with 77.16 tcf in 1989.
While Statoil takes a more optimistic view of the North Sea's future, it is less optimistic about the Barents Sea and the Haltenbanken area.
In the Barents Sea, which only a few years ago was seen as source of oil discoveries for development in the next century, Statoil estimates only 3.18 billion bbl of oil will be found, down from its 1989 estimate of 3.71 billion bbl.
Gas potential of the area is also downgraded-to 22-95 tcf from 24.89 tcf.
Proved oil reserves in the Barents Sea are 220 million bbl, down from 150 million bbl. Proved gas reserves increased to 10.4 tcf from 10.06 tcf.
On Haltenbanken, where development of proved oil reserves of 2.04 billion bbl and 10.77 tcf of gas is starting to get under way, the Statoil survey says undiscovered resources are 5.67 billion bbl and 39.72 tcf, compared with 5.73 billion bbl and 47.67 tcf last year.
Proved reserves for Haltenbanken in 1989 were 1.98 billion bbl and 9.88 tcf.
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