Norway, Faroes Open Licence Rounds

Norway and the Faroese government have announced new licensing rounds in recent days. The Norwegian petroleum and energy ministry announced the 24th licensing round on June 21, comprising a total of 102 blocks: nine blocks in the Norwegian Sea and 93 in the Barents Sea. The aim is to award new production licenses during 1H 2018. 

The deadline for applications is midday on November 30 and a map of the licences on offer can be downloaded here. 

In early May, the ministry announced the APA 2017 licensing round for mature areas, for which the deadline for application is midday, September 1. It covers 87 blocks, of which 34 in the Norwegian Sea and 53 in the Barents Sea. 

Meanwhile the Faroese geological survey said June 26 that the fourth licensing round of the Faroe Islands is now open, following an official launch in the capital Torshavn on May 17. The closing date for the round is February 17 2018. No specific blocks were announced; instead the survey has opened a virtual data room and said that the licensing area is the northwestern part of the Faroe-Shetland basin.

It acknowledged that to date only nine wells have been drilled in Faroese waters, with some hydrocarbons found but not in commercial quantities. The survey will be hoping that an increase in exploration interest in the Atlantic margin, from offshore Ireland through Senegal to Brazil, may spur efforts to drill again off the Faroes.  The Faroe Islands have a devolved government with defence and foreign affairs handled by their sovereign state, Denmark.

Update June 28: The Faroese geological survey tells NGW that the licensing area is situated southeast of the Faroe Islands, which is the northwestern part of the Faroe-Shetland Basin (see map). It adds: "Since there at the moment are no license-holders in the area, all of the acreage area is available."

Kraken Awakes

In other news, UK firm EnQuest announced first heavy oil production from its Kraken field in the UK North Sea, east of Shetland. Peak production is expected to be some 50,000 b/d oil (no gas) at 100% equity, with EnQuest as operator having an interest of 70.5%, alongside Cairn Energy with 29.5%. The development cost $2.5bn, so almost a quarter less than the $3.2bn when first sanctioned.

Although other heavy oil fields have produced in the UK, this is the first of a batch of projects that were discovered some time ago but were previously deemed too challenging technically to develop, consultancy Wood Mackenzie said.

Mark Smedley