The Danish Energy Agency (DEA, Energistyrelsen) reported record interest from oil and gas companies in the upcoming licensing round for blocks in the North Sea.
DEA received 25 applications from 15 oil companies, and several applicants have not previously held licenses in Denmark.
Applicants include: A.P. Møller – Mærsk A/S, Ardent Oil Ltd., Dana Petroleum Denmark BV, Danoil Exploration A/S, DONG E&P A/S, Dyas BV, Edison International SpA, Hansa Hydrocarbons Ltd., Hess Denmark ApS, Mærsk Olie & Gas A/S, Noreco, Oil Denmark A/S, PA Resources UK Ltd., RWE Dea AG, Shell Olie & Gasudvinding BV (Holland), and Wintershall Noordzee BV.
In map at right, all light green blocks are open; dark green are licensed to a certain depth, and gray areas are already licensed.
The 7th licensing round application period opened on 24 April and closed on 20 October.
The areas offered for licensing comprise all unlicensed areas in the Central Graben, where the majority of Danish fields have so far been discovered, as well as areas further to the east, where oil discoveries were made in the 6th Licensing Round, DEA said.
The DEA said it expects to issue licenses at the beginning of 2015.
“I look forward to the future licenses leading to new commercial discoveries that can secure the greatest possible revenue from the North Sea for Danish society,” Minister for Climate, Energy and Building Rasmus Helveg Petersen said.
Nordsøfonden is the Danish State’s oil and gas company. Since 2005, Nordsøfonden has participated in all new licences in t he Danish sector with a 20% interest.
Production
Danish oil production began in 1972 at the Dan field, and so recently marked its 40th anniversary. Only three companies operate Denmark's 19 producing fields: Maersk Olie og Gas A/S, DONG E&P A/S, and Hess Denmark ApS.
Oil and gas production is falling in Denmark. In 2013, oil production averaged 175,517 b/d, down 13% year-over-year from 202,089 bo/d in 2012. Gas production in 2013 was 4.7 billion cu. m, down 16% from the 5.6 billion cu. m produced in 2012.
The DEA expects output to continue to decline from 2014 to 2018. However, the DEA said it believes there are still large untapped oil and gas reserves in the North Sea that can boost the country’s output.
Next round
The DEA said it intends to hold licensing rounds at regular intervals in the future. Their intention is to launch new licensing rounds approximately one year after completion of the previous round. The 8th Licensing Round will probably begin mid-2016.
Related news:
Denmark - the last of a dying breed, 15 September 2014
Danes eye EOR boost, 13 May 2014
Denmark opens 7th round, 25 April 2014
Denmark nears 7th round, 26 November 2013
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