OSLO, Feb 9 (Reuters) - Royal Dutch Shell will
narrow its exploration scope in Norway to focus on natural gas
production and possibly offshore wind in future, it told the
Norwegian oil and energy ministry.
Shell said in October it planned to reduce its oil and gas
operations to nine basins around the world as part of its
strategy to reduce the carbon intensity of its operations. It is
expected to announce details of its new strategy on Thursday.
"In 2020, we have made a choice to focus exploration
activities in Norway going forward to areas around existing
discoveries and infrastructure," it said in a letter on the
ministry's website, published as part of a public consultation
for a government report on energy policy.
"That means that we now primarily position ourselves as a
gas company on the Norwegian shelf ... This is a business that
in the coming decades will create significant value for us as a
company and Norway as a nation," it added.
Shell said in the letter it might take part in offshore wind
power developments off Norway, calling the government to
consider tax incentives to spur investments.
A Shell spokesman said the firm did not rule out taking part
in future licensing rounds in Norway's frontier areas.
The Anglo-Dutch major operates Norway's second-largest gas
field Ormen Lange, and is a partner in the Equinor-operated
Troll field.
It also provides technical service at the Nyhamna plant,
which process natural gas from several fields for export to
Britain and continental Europe.
Shell's decision comes as Norway seeks bids from oil firms
in its latest frontier areas licensing round, which includes
more than 100 new blocks in the Arctic Barents Sea.
In 2016, Shell pulled out of Norway's Arctic-focused oil
licensing round, citing a need to adjust its portfolio after
merging with BG and due to low oil prices. It took part in the
next frontier areas round and was awarded one operatorship in
the Norwegian Sea in 2018.
Norway holds separate licensing rounds in the mature areas.
(Reporting by Nerijus Adomaitis; Additional reporting by Ron
Bousso in London; Editing by Edmund Blair)