By Maggie Johnson
January 16, 2025
Norway has awarded 53 new oil and gas production licenses on its continental shelf as part of the APA 2024 licensing round, reinforcing its role as a reliable energy supplier to Europe. Energy Minister Terje Aasland emphasized the importance of this move, stating that continued development of the continental shelf is vital for employment, value creation, and economic benefits for the mainland.
The licenses cover key offshore regions, with 33 in the North Sea, 19 in the Norwegian Sea, and one in the Barents Sea. A total of 20 companies received shares, with 13 designated as operators. Among them, state-owned energy giant Equinor secured 27 licenses, including seven as an operator, and announced plans to drill approximately 250 exploration wells by 2035.
“There are still substantial resources on the Norwegian continental shelf,” said Jez Averty, Equinor’s senior vice president for subsurface. “Together with our partners, we need to explore more to support European energy security.”
Norway's robust energy infrastructure includes three gas processing plants, an oil refinery, and nearly 9,000 kilometers of pipelines, making the country a critical supplier to European markets. Following Russia's 2022 invasion of Ukraine, Norway became Europe’s leading gas supplier, providing 30% of the EU's gas imports and filling the gap left by banned Russian oil.
The APA licensing system, introduced in 2003, prioritizes resource extraction in mature areas close to existing infrastructure. This approach allows for efficient operations, quicker project timelines, and reduced greenhouse gas emissions. By focusing on regions near decommissioning facilities, Norway maximizes resource potential while minimizing costs and environmental impact.
As Europe faces persistent energy challenges, Norway's expanded exploration and production efforts strengthen its position as a key energy partner. These measures ensure long-term stability and resilience in meeting the continent’s energy demands.
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