Interest in new licenses in existing exploration plays offshore Norway has dropped by about a quarter.
Some 33 companies have applied for licenses in Norway's 2016 awards in pre-defined areas licensing round, the Norwegian Petroleum Directorate (NPD) said this morning.
Last year, 43 companies applied for licenses in the annual licensing round on the Norwegian Continental Shelf.
The drop is despite there being more acreage on offer this year, at 139,942sq km, compared to 127,608sq km. Most of the interest is in the North Sea and the Norwegian Sea, the NPD says.
Despite the fall in interest, NPD exploration director Sissel Eriksen said it was positive so many companies were still interested.
“It is very positive that so many companies still believe that more oil and gas can be discovered on the most mature parts of the shelf. We have received many exciting applications,” she said.
“The APA scheme is important for maintaining the activity level and realizing the values on the shelf. The application volume has remained consistently high in recent years, and this demonstrates that the companies also prioritize exploration in mature areas during times with challenging cost and price regimes.”
The applications will now be assessed, including applicants’ geological concepts and strategies for exploring the areas.
APA 2016 was announced on 17 March 2016. The awards are scheduled for early 2017.