Oslo offers licenses in North, Norwegian seas

Norway has offered to foreign firms operatorships of more than half the exploration licenses in its 15th offshore licensing round.

The move reflects a relaxation of the country's tough licensing regime.

Eighteen production licenses covering 33 blocks in the Norwegian Sea and 13 in the North Sea have been offered to companies as a result of applications sought in February 1995.

A Ministry of Industry & Energy official said a breakout of the blocks offered would not be disclosed because the information is company specific. The ministry expects to make a detailed announcement after acceptance of the licenses.

Blocks offered

Companies offered operatorships and participating interests are Amoco Norway Oil Co., BP Norge UA, Esso Norge AS, Norsk Hydro AS, Mobil Development Norway AS, Phillips Petroleum Co. Norway, Saga Petroleum AS, Norske Shell AS, and state owned Den norske stats oljeselskap AS.

Companies offered participating interests in licenses are Norsk Agip AS, Amerada Hess Norge AS, Norske Conoco AS, Elf Petroleum Norge AS, Enterprise Oil Norwegian AS, Fina Production Licenses AS, and Total Norge AS.

Statoil has been offered only three licenses, a small share compared with previous licensing rounds. Norwegian companies Norsk Hydro and Saga have been offered three and two operatorships, respectively.

Shell said it is "very happy" with two operatorships and two license interests it has been offered, all in the Norwegian Sea. The company issued a statement saying "We will (of course!) accept the offers."

Shell said it has been offered operatorship and 30% interests in Blocks 6504/9, 6504/12, 6505/7, 6505/10, 6404/3, and 6405/1; operatorship and 30% interest in Blocks 6510/1 and 6510/2; a 15% interest in Blocks 6305/1, 6305/2, 6305/4, and 6305/5, where Hydro has been offered operatorship; and a 25% interest in Blocks 6305/7 and 6304/9, where BP was offered operatorship.

Norske Shell Managing Director Martien van der Wittenboer said he was pleased by government's confidence in Shell, particularly regarding the deep water challenges.

The ministry is believed to have been particularly swayed by Shell's deepwater successes in the Gulf of Mexico, where the company is producing in ever deeper water using tension leg platforms and subsea technology (OGJ, Nov. 13, 1995, p. 29).

Saga said it had been offered operatorship and a 25% interests in Blocks 6604/2, 6604/3, 6704/12, and 6705/10; operatorship and a 25% interest in Block 6508/1; a 25% interest in Blocks 33/5, 33/6, and 34/4; a 10% interest in Blocks 6706/12 and 6707/10; and a 10% interest in Blocks 6302/4, 6302/5, 6302/7, and 6302/8.

Foreign operators have pleaded for years with Norway's government to be offered more licenses because Statoil has been the major recipient, along with Hydro and Saga.