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Norway’s Arctic Oil Bonanza Gets Reality Check in Pipe Limbo


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Norway’s Arctic Oil Bonanza Gets Reality Check in Pipe Limbo

Business

Category: Energy

Norway, whose oil finds in the North Sea starting in 1969 helped turn it into the world’s second-richest nation per capita after Luxembourg, can’t waste time in deciding on how to transport what it finds off its northern tip down south to the rest of Europe, Petroleum and Energy Ministry Ola Borten Moe said at a conference in the Arctic town of Hammerfest this week.

The issue is “when we need more gas transportation capacity, not whether,” he said.

Companies including Statoil ASA (STL), Norway’s largest oil producer, and Total SA (FP) of France, Europe’s third-biggest, last year made commercial discoveries of oil and gas in the Barents Sea, the first in more than a decade. Norway is moving into the waters off its northern tip to boost output after oil production fell by half in the past decade amid dwindling North Sea output.

The Nordic country also offered 72 new blocks in the Barents Sea for exploration as part of its 22nd licensing round. Statoil, which is 67 percent-owned by the Norwegian government, signaled it may boost the pace of production at its Snohvit gas field, the only producing deposit in the Barents Sea, to free up transport facilities and send more gas south.

The company would reduce the commercial life of Snohvit by 20 years to 2030 should it push ahead with plans to double production capacity, spokesman Anders Ola Skauby said.

Source: Bloomberg

Published: July 2, 2022