Norway is offering new exploration blocks in the Barents Sea this year, but none in either the North or Norwegian seas.
The government decided the Barents Sea, a relatively underdeveloped region to the north of Norway, is the only area on offer in this year's awards in pre-defined areas (APA) licensing round, which covers mature areas with infrastructure in place. And the number on offer is drastically reduced from last year — just 28 are available for bidding, compared with 70 in the Barents alone last year, when four blocks in the North Sea and 10 in the Norwegian Sea were also offered.
The move appears to go somewhat against guidance for 'business as usual' in the Norwegian offshore that was given by the government last year, although the ruling coalition did suggest it would assess climate and environment "more holistically" when considering APA rounds. The offering of licenses in Arctic territory may not play well with climate activists.
There are only two producing fields in the Barents Sea — the Snohvit gas field and the Goliat oil field — and exploration results there have been disappointing. State-controlled Equinor has this year added to recoverable reserves at Johan Castberg with a pair of discoveries, but it and its partners plan to start production at the complex only in 2024, seven years after they approved it for development.
The APA bidding last year resulted in 28 companies being awarded 53 oil and gas production licenses, with only five of those awarded in the Barents. Blocks can be awarded in whole or in part. Norway, which is western Europe's largest oil and gas producer, has not held a licensing round for frontier areas since November 2020, which resulted in three production licenses in the Barents Sea and one in the Norwegian Sea.
