Denmark Launches 8th Round
The Danish Energy Agency June 26 published the terms of new licenses in its eighth round, which opened that day. Firms are invited to bid on areas in the Danish part of the North Sea by February 1 2019.
Areas offered are in the Central Graven of the North Sea, where most Danish oil and gas producing areas are located, and partly in the areas further east, bounded by 6 ° 15 'east longitude (click here for map) .
Since the 7th round in which 16 new licenses were awarded in 2016, a new political agreement on the North Sea petroleum development was concluded March 22 2017. It means that tax on oil and gas production has been reduced during 2017-2025, and conditions for third-party access to Danish offshore infrastructure improved. The original tax terms and concessions are spelt out in this invitation letter.
The 2017 decision to redevelop the Tyra gas field and export hub at a cost of krone 21bn ($3.4bn) further helps to ensure the basis for further exploration and development of the North Sea, the agency said.
"We hope in the Danish Energy Agency that many oil and gas companies share the view that the Danish area is still attractive and therefore will follow the call to apply for new permits. There is still a large oil and gas potential in our subsoil that can be used for the benefit of Danish society and the economy," said the agency's director Kristoffer Bottzauw. Two 7th round licenses have initially committed to drill, but wells there have yet to be completed.
Denmark's state-owned North Sea Fund (Nordsofonden) takes a 20% stake in all new concessions but does not take part in the application process; an 80% interest is then available for companies. The 8th round terms are available at www.ens.dk/8thRound . Specific areas and terms are published in Denmark's Official Gazette and on the Danish Energy Agency's website and the offer will also be published in the EU's Official Journal. This follows a statement by Danish energy minister Lars Christian Lilleholt June 22 to the Danish energy, supply and climate parliamentary committee about the 8th Round. The agency is also organising an information event for interested companies and relevant actors in 3Q2018.