norway’s government approved plans to reopen three North Sea gasfields and open oil and gas exploration in 70 new locations across the North Sea, Barents Sea and Norwegian Sea. Prime Minister Jonas Gahr Støre announced the decision and said it would “create great value for the community, lay the foundation for good jobs throughout the country, ensure our common welfare and contribute to Europe’s energy security and safety”.
The Labour-run government moved ahead despite advice from the country’s environment agency. Companies have until 1 September to apply for the 70 new exploration areas, and licences are expected to be granted early next year.
Albuskjell, Vest Ekofisk, Tommeliten Gamma
The three gasfields are Albuskjell, Vest Ekofisk and Tommeliten Gamma, all in the North Sea and all closed in 1998. The government plans to spend 19bn kroner restarting them by the end of 2028, with production expected to continue until 2048. The gas will be sent by pipeline to Germany and the light oil will be sent to the UK.
Støre opened his announcement with the words, “We live in troubled times,” as he set out the policy. The decision lands during sharp price rises in oil and gas since the US and Israel’s attack on Iran in February, and it comes as the UK government has banned new exploration licences in its waters.
Lars Haltbrekken attacks the plan
Lars Haltbrekken, deputy leader and environment spokesperson for the Socialist Left party, called the decision “madness” and accused the government of greenwashing. He said, “It shows that the government is once again blatantly ignoring environmental advice from its own experts,” and added: “All the talk about responsible oil extraction is nothing but nonsense. It’s greenwashing through and through, with vulnerable and important natural areas being put at risk with full awareness.”
Haltbrekken also warned of “potentially catastrophic consequences for fish and bird populations” and said: “We are now risking oil drilling right up to the shoreline. If an accident happens, we have no chance of preventing an environmental catastrophe.”
Equinor and European supply
Equinor, Norway’s state oil company, pumped 2.31m barrels of oil equivalent a day in the first quarter, almost 9% more than in the same months last year. The company’s output gives Støre a stronger production backdrop as the government pushes the new licensing round and the field restarts.
For companies interested in the 70 areas, the immediate deadline is 1 September. For the rest of the market, the next formal step is the expected granting of licences early next year, which will decide which firms can move from applications to exploration work in the North Sea, Barents Sea and Norwegian Sea.
