The Norwegian Ministry of Oil and Energy is working on a new offshore license offering to encourage foreign players in its oil and gas industry, a move aimed in part at assuaging fears of StatoilHydro dominance, OilGas24 learned Friday.
Company sources involved in Norway’s awards in predefined areas this year have told OilGas24 that they have been cooperating in the creation of a new type of license where, for the first time, parties apart from oil companies can “promote” acreage akin to the U.K. system. U.K.-sector geophysics crews are allowed in on less expensive “promote” acreage ahead of attracting seasoned production crews and oil company capital.
“We have been working with the authorities to develop a new license, but it’s different that the U.K. (promote) because you still have to drill with this new one,” the source told OilGas24.
... it’s different that the U.K. (promote) because you still have to drill with this new one.
The new license offering was in the works when the Oil Ministry cancelled the last licensing round and announced the winners of the Awards in Predefined Areas. Among new Norway sector licensees and pre-qualified operators are facilities manager Petrofac, Rocksource (of electromagnetic-survey fame) and Aker Exploration.
Among notable Norway newcomers are E. ON Ruhrgas, while waiting on Norway entry are Transeuro Energy Corp., Discover Petroleum and Alberta Oilco.
Oil and Energy Minister Odd Roger Ennoksen has come out and said government was expanding the involvement of regualtors in oil and gas licensing to allow the participation of more foreign players. This just, as state oilfield interest, Petoro, is said to be in need of more personnel.
“That’s one of the things we’re looking at and will be evaluated in relation to future licenses,” Ennoksen was quoted by newspaper Afternposten as saying.
With the offshore oil and gas production shares of a newly combined StatoilHydro set to 80 percent of Norway totals, the government said it is seeking ways to shake of fears of dominance while stirring up activity.
The new licenses could be accompanied by a revived “area tax”, or they might be the successor idea. The area tax idea, apparently dropped last year, would have likened a scheme once suggested by U.K. sector unions in their proposed “inactivity tax” on unused acreage.
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