Det norske looks to the north

This article originates from the news archive of Det norske.

28. June 2012

On Tuesday the Ministry of Petroleum and Energy announced the 22nd licensing round on the Norwegian shelf. Det norske is very pleased with the announcement and has already started the preliminary work in order to deliver good applications. The announcement includes 72 blocks in the Barents Sea and 14 blocks in the Norwegian Sea. Det norske is pleased with the announcements in the 22nd licensing round.

It is the oil companies themselves who nominate blocks for the Norwegian shelf licensing rounds. A total of 37 companies participated in this round of nominations. Particular interest has been shown in the northernmost sea areas. Some 181 blocks in the Barents Sea were nominated, the highest-ever number. 72 of these have been announced. The authorities, in close cooperation with relevant community stakeholders, prepare the licensing round based on the nominated blocks.Erik_Haugane_Q2

Det norske is pleased with the announcements in the 22nd licensing round, said CEO Erik Haugane.

 

–          The 22nd round is critical in establishing a greater diversity in the Barents Sea, something in which the MPE seems to facilitate with this year’s announcements. Det norske is pleased with the announced blocks in the 22nd licensing round. They cover the areas we expected them to cover. We have already acquired data and work has commenced to evaluate several areas of the Barents Sea. We should be able to deliver good applications prior to deadline.

Det norske’s activities in the Barents Sea are lead from the Harstad office. The company has implemented a number of measures to strengthen its position in the High North.

Det norske has got several agreements with industry, research and educational institutions. The goal is to prepare the ground for increased activity. In the 2011 APA round, the company was awarded a long-awaited operatorship in the Barents Sea.

Stig_Vassmyr
Stig Vassmyr, head of exploration in the Barents Sea, also approve of the announcement.

We have been working continuously with the Barents Sea over the last three rounds. We also have a very good database and expertise in the area and look forward to evaluating the announced blocks. The blocks cover a variety of geological provinces and plays, from Paleozoic to Tertiary. This will be a lot of fun, Vassmyr says.

Facts:

There are two types of licensing rounds on the Norwegian Continental Shelf:

  • Awards in Predefined Areas (APA), which includes the mature parts of the Norwegian shelf, with known geology and good infrastructure. These awards are announced every year.
  • The ordinary licensing round, which includes the immature parts of the Norwegian shelf. These rounds are usually announced every other year.

The first licensing round (consession round) was announced in 1965. Nine companies and groups of companies were awarded 22 production licenses in the very first concession round.

The 22nd licensing round was announced June 26th. 86 blocks, 14 in the Norwegian Sea and 72 in the Barents Sea, were offered. Application deadline is in December.

Geographical breakdown of the Norwegian shelf:

The Norwegian continental Shelf is divided into quadrants. Each quadrant consists of 12 blocks. The blocks’ size are 15 minutes of latitude, 20 minutes of longitude. In the North Sea that is the equivalent of approximately 500 km².

In the illustration below we have shaded quadrant number 17, as well as the block in the northeastern corner. This block is named 17/3 (quadrant/ block number).
blokkOthers, Great Britain for instance, divides its continental shelf into blocks by different principles.


About Det norske:
Det norske oljeselskap ASA (DETNOR) specialize in extracting petroleum resources on the Norwegian Continental Shelf (NCS). We are an ambitious company with significant exploration activity. Recently we have taken part in some major discoveries, Sverdrup being the single most important. We now face several development projects, among them Jette as operator, and Draupne.

Det norske has its headquarter located in Trondheim, and offices in Oslo and Harstad. As of today we are more than 180 employees.

Det norske is listed on the Oslo Stock Exchange with the ticker “DETNOR”.