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Share Price: 2,767.50
Bid: 2,769.00
Ask: 2,770.00
Change: 19.50 (0.71%)
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Norway boosts oil, gas drilling, including in Arctic

Tue, 16th Jan 2024 15:39

Awards 62 exploration permits, up from year-ago 47

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More interest in Arctic Barents Sea drilling

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Awards are based on applications from oil firms

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Environmental groups protest Norway's drilling

SANDEFJORD, Norway, Jan 16 (Reuters) - Norway on Tuesday awarded stakes in 62 offshore oil and gas exploration licences to 24 energy companies, including state-controlled Equinor , boosting the amount of acreage offered as the country seeks to pump for decades to come.

The annual award was up from 47 licences a year ago when 25 firms received permits. The increase involved drilling permits in the Arctic Barents Sea and the adjacent Norwegian Sea, the country's energy minister told a conference.

The annual predefined areas (APA) rounds of exploration acreage are central to Norway's strategy of extending its oil and gas production, a policy fiercely opposed by environmentalists, dozens of whom picketed the event.

The licence awards in the Barents Sea, a vast ocean off the northern tip of continental Europe, rose to eight in the new round from just two one year ago, as energy companies expressed more interest in the remote and environmentally harsh region.

"Last year I asked companies to look more closely at Barents Sea opportunities... this award shows that more companies have responded positively and are taking responsibility," Minister of Energy Terje Aasland said.

The awards, based on applications from companies, marked the return of Aker BP to the Barents Sea, which the company had abandoned years ago after spudding a number of dry wells.

"We have a new team, we have new ideas, we have new acreage," Aker BP CEO Karl Johnny Hersvik said, adding the plan was to look mainly for natural gas.

EUROPE'S BIGGEST GAS SUPPLIER

While Norway backs the Paris climate accords and the global goal to transition away from fossil fuels, the country also says the world will need access to oil and gas for many years.

"The government's policies continue to be on a head-on collision course with a sustainable climate," Friends of the Earth Norway head Truls Gulowsen said in a post on social media X.

Norway in 2022 overtook Russia as Europe's biggest gas supplier as Moscow's invasion of Ukraine severed decades-long energy ties. The Nordic country also replaced some of the Russian oil barrels banned by the European Union.

The number of new drilling permits awarded in the North Sea was unchanged year-on-year at 29, while 25 were issued for the Norwegian Sea, up from 16 one year ago.

Equinor was awarded stakes in 39 licences, including 14 it will operate, while the second-largest listed oil firm, Aker BP, received stakes in 27 licences, including 17 it will operate.

Vaar Energi came third with stakes in 16 licences, including four it will operate.

Oil majors Shell and TotalEnergies received stakes in one licence each, while ConocoPhillips received stakes in three.

Norway's overall output amounted last year to around 4 million barrels of oil equivalent per day, divided equally between oil and natural gas.

Production is expected to remain at this level in the coming years before dropping sharply in the 2030s unless new resources are found and developed. (Reporting by Nerijus Adomaitis and Nora Buli in Sandefjord, editing by Terje Solsvik and Barbara Lewis)

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Dutch Senate delays Groningen gas field shutdown

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Kazakhstan's Kashagan operator says reports of oil spill not confirmed

ALMATY, April 3 (Reuters) - The operator of Kazakhstan's giant offshore Kashagan oilfield said on Tuesday reports of an oil spill near the field have not been confirmed and its offshore facilities were working normally. (Reporting by Mariya Gordeyeva Writing by Olzhas Auyezov)

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2 Apr 2024 18:55

Europe Distillates-Diesel margins rebound

LONDON, April 2 (Reuters) - Northwest European diesel barge margins ticked $1.91 higher to around $25.05 a barrel on Tuesday, after hitting their lowest since July 2023 on Thursday in the final session before Easter holidays in Europe.

Trades   Bids   Offers  Previous  Seller  Buyer
Session
0.1 GO Barge Apr -$21
diffs fob ARA
per tonne
<GO-ED-ARA>
0.1 GO Cargo
diffs cif NWE
per tonne
<GO-CND-NWE>
0.1 GO Cargo April
diffs cif Med +$6.5
per tonne 0
<GO-CND-MED>
50ppm barge April
diffs fob ARA -$2
per tonne
<GO50PPM-ED-A
RA>

Diesel Trades Bids Offers Previous Seller Buyer
Session
Diesel barge April Apr Shell, BP,
diffs fob ARA +$2.54 $2-$4 Belgom Vitol,
per tonne (34.85K ine Glenco
<ULSD10-BD-AR T) re,
A> Gunvor
,
Totsa
Diesel cargo April Shell BP
diffs cif NWE +$14
per tonne (CIF
<ULSD10-ANYD- Thames)
NWE>
Diesel cargo Med
diffs cif Med +$3
per tonne
<DL-CIFD-MED>

Jet fuel Trades Bids Offers Previous Seller Buyer Session
Jet fuel CCM
barge -$6
diffs fob
FARAG
per tonne
<JET-BD-ARA>
Jet fuel CCM
cargo +$6.50
cif NWE per
tonne
<JET-CD-NWE>

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LONDON MARKET CLOSE: Europe down after Easter holiday weekend

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London close: Stocks turn red on return from Easter break

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2 Apr 2024 12:29

Shell back in court in landmark Dutch climate case

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2 Apr 2024 11:00

Biden administration approves eighth US offshore wind project

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How the oil industry is thriving despite Joe Biden's climate policies

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By Nichola Groom, Jarrett Renshaw

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IKAV, VTTI buy majority stake in Italy's biggest LNG terminal

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Big Oil's climate planning not good enough, investor group says

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