Norwegian oil exploration and development company Det Norske Oljeselskap has appealed the country’s government decision to decrease its stake in Johan Sverdrup oil field in the North Sea.
Earlier this month, Norway’s Ministry of Petroleum and Energy (MPE) declared the ownership interests in the field and awarded 11.57% stake to Det Norske.
Claiming that the government decision reduced its stake deposit, the company requested to increase its stake to 12.23%, Bloomberg reported.
In its appeal to the government, the company claimed that the ministry’s decision was invalid and has misinterpreted the petroleum act.
Det Norske also claimed that the ministry failed to provide enough justification for its decision.
If it becomes successful in appealing the government’s decision, the company can gain access to 20 million barrels more from the field.
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In February, the company said it did not properly reflect that the oil on its side of the deposit is worth more and did not sign a compromise on the distribution of stakes.
Instead of settling the dispute, the government, which was compelled to act, reduced Det Norske’s stake by 0.32%.
Det Norske also said in its appeal that owners of license 265 should have their total Sverdrup stake raised to 60.5% from the existing 57.2% that was awarded in July.
The company is also considering legal further legal options should it fail to successfully appeal the decision.
Johan Sverdrup oil field is expected to commence production at the end of 2019 and its other owners include Statoil, Lundin Petroleum, Petoro and AP Moeller-Maersk.
Image: Det Norske Oljeselskap headquarters in Trondheim, Norway. Photo: courtesy of Manxruler.