Norway sees dip in oil firms applying for drilling permits (updated)

Atlantic Petroleum P/F

09/09/2015 12:18

(Adds energy minister's quote, background) 
    OSLO, Sept 9 (Reuters) - A total of 43 oil firms have asked 
for drilling permits in Norway's annual licensing round in 
so-called mature areas of its continental shelf, down from 47 
last year, the country's Oil and Energy Ministry said on 
Wednesday. 
    Statoil  STL.OL , BP  BP.L  and Royal Dutch Shell  RDSa.L  
were among the applicants, it added. 
    Norway, western Europe's biggest energy producer, regularly 
offers blocks that were either handed back or not taken in 
previous rounds as technological advances and nearby discoveries 
improve exploration prospects over time. 
    Plunging crude prices have led to a sharp decline in 
investments by oil firms on Norway's continental shelf this 
year, leading to higher unemployment and concerns that the 
country's most important industry will continue to contract.     
    "Giving extensive and predictable access to attractive 
exploration acreage is among the most important things the 
government can do to sustain a high, long-term activity level in 
the industry," Energy Minister Tord Lien said in a statement. 
    Unlike many other oil and gas producers, Norway hands out 
licences for free and subsidizes both exploration and 
development costs before imposing a 78 percent tax on 
production. 
    Among the new blocks included in the 2015 mature round are 
acreage near Statoil's  STL.OL  Aasta Hansteen gas field, Lundin 
Petroleum's  LUPE.ST  Alta and Gohta finds and blocks near the 
smaller Pil and Bue discoveries, the ministry has said. 
    Mature areas licensing rounds have led to a plethora of 
discoveries in recent years and even part of the giant Johan 
Sverdrup field, with up to 3 billion barrels of oil equivalents 
was found through such an award. 
    The government is expected to decide on the allocation of 
resources in early 2016.  ID:nL5N0XI19V  
    Norway is also conducting a separate licensing round for 
frontier areas with a focus on Arctic areas and expects 
applications until Dec. 2. 
 
 (Reporting by Terje Solsvik, editing by Alister Doyle and Susan 
Thomas) 
 ((terje.solsvik@thomsonreuters.com; +47 2331 6599; Reuters 
Messaging: terje.solsvik.thomsonreuters.com@reuters.net)) 
 
Keywords: NORWAY OIL/