Norway's Ministry of Industry & Energy has outlined offshore areas that may be confirmed in 1994 95 as new sites for exploration in the 15th licensing round.
The disclosure came in a white paper presented to Storting, Norway's parliament.
The ministry wants to open new areas of the Norwegian Sea and in the Skagarrak area off southern Norway. It also plans to change regulations governing Barents Sea exploration.
As expected, tax concessions were not included among measures designed to maintain the pace of exploration and development off Norway (OGJ, Feb. 28, Newsletter).
NEW PLAYS
In the Norwegian Sea, the ministry proposed opening the Voring and More basins, which lie far from the coast, the Nordland VI area, and parts of Nordland IV and V areas farthest from the coast. The ministry also proposed exploration of the southwest portion of the Skagerrak area.
Nordland VI and Skagerrak would be only partially opened. In Nordland VI six wells would be allowed and in Skargerrak only four. The wells could be drilled only in winter, and only one rig would be allowed in each area at a time.
The ministry said, "Norwegian Federation of Trade Unions is in favor of opening both areas, while environmental and fishery organizations are less positive.
"Regional authorities along the south coast are to a large extent reluctant to open up for exploration activity in that area. In mid Norway most people surveyed are in general positive to opening of areas far from the coastline."
The ministry said the Norwegian Petroleum Directorate and oil companies view the proposed plays as highly prospective: "Some companies expect these areas to contain about the same amount of petroleum resources as have until now been produced on the Norwegian continental shelf."
Development in these areas might start about 2005 at the earliest, while production might start about 2010.
A ministry official said the proposals are likely to be debated fully in Storting in fate May and early June, after which a decision will be made on approval of exploration areas.
BARENTS SEA
Proposed changes to Barents Sea exploration regulations include allowing group applications, larger license areas, simplified nomination and application processes, changed fee provisions, longer exploration periods, and less stringent license relinquishment rules.
Under the proposals, future production licenses will include an initial exploration period of 10 years rather than the current 6 years, while extensions of more than 1 year at a time will be considered.
The main rule that 50% of the license area must be relinquished after the initial period is to stay in place under the new proposals, except where a discovery is made.
The 15th licensing round will offer Barents Sea acreage along with new plays approved after debate of the white paper, as well as other areas of the Norwegian shelf.
Peter Tronslin, managing director of the Norwegian Oil Industry Association (OLF), Stavanger, said it is too early to voice a collective operators' reaction to the white paper.
Members have been given copies of the white paper. OLF aims to approach the government select committee on energy and environment to voice any concerns.
The select committee will spell out its recommendations in a separate report to Storting.
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