Norway Gives Six Companies Carbon Storage Licenses in North Sea

Thursday, June 20, 2024

Norwegian Ministry of Energy has offered four new exploration licenses for CO2 storage on the Norwegian continental shelf to Equinor, Vår Energi, OMV (Norge), Lime Petroleum, Aker BP and PGNIG Upstream Norway.

All four offered licenses are in the North Sea. Two of the licenses are offered to Equinor.

One license is offered to a group consisting of Vår Energi ASA, OMV (Norge) and Lime Petroleum, and one license is offered to a group consisting of Aker BP and PGNiG Upstream Norway.

The licenses are offered with a binding work program which includes mileposts that ensures fast and efficient progress or return of the areas if the licenses do not carry out the storage project.

“The government is committed to facilitate to ensure that CO2 storage can become a commercially profitable and sustainable ocean industry in Norway. For the players to succeed with their ambitious plans, the storage part of the value chain must also be in place.

“Today's awards are therefore a new, important step towards establishing Norway as a leading player in large-scale commercial CO2 storage for European emission sources,” said Terje Aasland, Norway’s Minister of Energy.

Aasland added that the awards have been given to companies that have matured good, industrial plans.

Offered areas for storage of CO2 (Credit: Norwegian Offshore Directorate)

In line with Norway’s regulations on transportation and storage of CO2 into subsea reservoirs on the continental shelf, the ministry normally expects to award an exploration license prior to awarding an exploitation license in a relevant area.

Exploration licenses can be awarded to one or more competent companies. If a license is awarded to several companies, the ministry will, generally, appoint one of the companies as operator.

The work program will normally end with a demand that the companies make an investment decision on the realization of CO2 a storage, and that they then submit a plan for development and operation (PUD) for the storage location or relinquish of the area.

Categories: Offshore Energy Subsea North Sea Industry News Activity Europe Decarbonization CCS Carbon Storage

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