Norway’s parliament has mandated the government to initiate a new oil and gas exploration licensing round in frontier areas, signalling a potential increase in drilling activities.
This decision comes as Norway holds the position of Europe’s largest natural gas supplier, contributing approximately 30% of the EU’s gas imports, a status amplified by Russia’s invasion of Ukraine in 2022, reported Reuters.
The original proposal, which urged the government to commence a new licensing round in the first half of this year, was modified at the Centre Party’s request, delaying the process until next year.
Despite halting the award of ocean blocks for oil and gas drilling in frontier regions like the eastern Barents Sea, Norway has maintained annual licensing rounds in more established areas.
Last year, Norway achieved a record export volume of natural gas to Europe, with expectations for similar levels in the coming years.
Nevertheless, projections indicate a sharp decline in output post-2030. Identifying and developing new resources could mitigate this anticipated downturn, the report said.
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By GlobalDataIn January this year, the Norwegian Government awarded stakes in 53 offshore oil and gas exploration licences to 20 companies as part of the annual predefined area 2024 licensing round.
However, this figure represents a decrease from the 62 licences awarded the previous year, with the number of companies receiving permits also dropping from 24.
The distribution of the latest licences saw an increase in the North Sea with 33 awards, while the Norwegian Sea experienced a reduction to 19 licences.
The Barents Sea was allocated a single licence, a significant decrease from the eight granted previously.
