Norway Launches 19th APA Round

Norway’s oil ministry kicked off this year’s licensing round in mature areas on the Norwegian continental shelf (NCS) – Awards in Predefined Areas (APA) 2019 – May 29.

Oil minister Kjell-Borge Freiberg said the government was continuing its practice of offering regular concessions on the NCS to provide the industry access to new acreage, which is a “a central element in the government's policy. I believe the oil companies are well motivated to continuing exploring the NCS.”

The tax regime is more favourable than in the UK for drilling exploration wells, say producers active on both sides of the border.

In the APA 2019, the predefined area has been expanded by a total of 90 blocks – five in the North Sea, 37 in the Norwegian Sea and 48 in the relatively unexplored Barents Sea, which shares a border with the Russian Federation. Until a few years ago, the two sides disputed where the border should be drawn, hindering exploration.

The expansion of the APA-area is important to ensure effective exploration of larger parts of the NCS, including the Barents Sea. The expansion will give the companies access to new opportunities that can enable value creation, employment and technology development, the ministry said.

The application deadline for companies is August 27 and the aim is to award new production licences in the announced areas in the beginning of 2020.