Norway’s Ministry of Petroleum and Energy awarded Equinor with 26 new production licenses.
Petroleum company Equinor announced that Norway’s Ministry of Petroleum and Energy (MPE) awarded the company 26 new production licenses in the 2022 Awards in Predefined Areas (APA).
Equinor received production licenses that includes 18 licenses as operator and eight licenses as partner.
According to the organization, the production licenses are divided into the following locations: 16 in the North Sea, nine in the Norwegian Sea, and one in the Barents Sea.
Equinor’s Senior Vice President for Subsurface in Exploration and Production Norway Jez Averty expressed delight toward the awards, “The APA rounds are important, and we are very pleased with today’s awards.”
The organization believes that continued exploration and replenishment are essential to maintain long-term, important energy supplies from Norway, while production from existing oil and gas fields will decline.
“Our analyses show that active exploration activity is the most important single measure to ensure continued value creation towards 2030, and beyond,” Equinor noted.
In addition, the company intends to participate in 25 exploration wells by 2023.
“Around 80% of the exploration wells will be drilled in known, mature areas. Discoveries near existing infrastructure require less volume to be commercially developed, and can be quickly put on stream and with low CO2 emissions,” Averty explained.
Moreover, he added that the company plans to “maximize” the value creation from the existing infrastructure that has been developed “over a long period on the NCS.”
Averty emphasized that exploration is “essential” to Equinor’s goal to “transform the NCS from an oil and gas province to a broad energy province.”
“New gas volumes will be key to enabling the development of new value chains for hydrogen for Europe,” he said.