- Aug 18, 2021 8:36 pm GMT
There are speculations that Norway’s likely new government after the upcoming 13 September parliamentary election have secretly been working on a plan to ban exploration in new areas on the Norwegian continental shelf. The two contending parties are Labor led and Center party. Although, both parties deny of any such discussions.
- Neither party appears to have enough support at present to gain a majority in parliament and will therefore need support from Socialist Left, a party that has prioritized putting a halt to oil and gas exploration.
- One option is to stop the country's biennial numbered licensing rounds
- Further option is to stop Norway’s reimbursement system, which was introduced in 2005 to reduce the entry barriers for new companies and encourage economically viable exploration.
- According to CEO of Norwegian energy company Equinor; the Awards in Predefined Areas (APA) are much more important than the numbered licensing rounds.
- Equinor's exploration strategy in Norway is mainly focused on opportunities near existing infrastructure — 80% of their exploration drilling is in APA areas.
- Even in case if exploration in APA continue, the opening up of new areas offering additional though less mature opportunities looks doubtful.
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