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UPDATE 1-Norway awards 33 oil firms a record number of exploration blocks

Tue, 15th Jan 2019 13:30

By Nerijus Adomaitis

SANDEFJORD, Norway, Jan 15 (Reuters) - Norway awarded arecord 83 blocks to explore for petroleum resources in matureareas of the Norwegian continental shelf, in a sign ofcontinuing interest from oil companies in the country's oilsector, the energy ministry said on Tuesday.

A lack of large discoveries on the shelf has promptedconcerns that Norway's top industry, which employs about 170,000people directly and indirectly, could fall into decline.

The government hopes that offering more licenses couldtrigger more activity.

"This is the largest licensing award on the Norwegiancontinental shelf. Fifty-three years after the first licensinground, this new record confirms the industry's belief incontinued value creation and activity in Norway," Oil and EnergyMinister Kjell-Boerge Freiberg said.

A total of 38 oil companies had submitted bids for acreageoffshore Norway in the so-called predefined areas (APA)licensing round by last September's application deadline.

Western Europe's largest oil producer is expected to see itsoil output decline this year to its lowest level in threedecades, before rebounding next year.

The government handed out 37 licenses in the North Sea, 32in the Norwegian Sea and 14 in the Barents Sea in areas near theexisting discoveries. Altogether, 21 oil firms receivedoperatorships.

Norway's majority state-owned oil and gas firm Equinorwas awarded the majority, with 13 operatorships. AkerBP was awarded 11 operatorships, while Sweden'sLundin won 9.

Norway's DNO and Britain's Faroe Petroleumtogether won 9 operatorships. Middle East-focused DNO, whichreturned to the North Sea, recently won a hostile bid to acquireFaroe.

DEA and Wintershall, which have agreed to merge,have received a combined five operatorships.

The other companies that received operatorships and stakesin licenses include oil majors Total, Shelland ConocoPhillips, as well as Eni's Norwegiansubsidiary Vaar Energy.

When announcing the round last May, the government expandedthe pre-defined areas near the existing discoveries by a totalof 103 blocks.(Editing by Terje Solsvik and Louise Heavens)

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