licensing system in norway n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Licensing system in Norway PowerPoint Presentation
Download Presentation
Licensing system in Norway

Loading in 2 Seconds...

play fullscreen
1 / 22

Licensing system in Norway - PowerPoint PPT Presentation


  • 78 Views
  • Uploaded on

Licensing system in Norway. Steinar Njå Norwegian Petroleum Directorate. Licensing system in Norway. Discretionary system The Government invites companies to apply for exclusive rights to petroleum activities in designated blocks Based on applications production licences are awarded

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Licensing system in Norway' - berk-strickland


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
licensing system in norway
Licensing system in Norway

Steinar Njå

Norwegian Petroleum Directorate

slide2

Licensing system in Norway

Discretionary system

  • The Government invites companies to apply for exclusive rights to petroleum activities in designated blocks
  • Based on applications production licences are awarded
    • Production licence contains an exclusive right to exploration, drilling and production of petroleum within the license area
  • The licensee is the owner of his proportionate share of the petroleum produced
licensing system in norway1
Licensing system in Norway

Oil companies vs. the Government

100 %

0 %

company activities

Government activities

0 %

100 %

development and production

exploration

licensing system in norway2
Licensing system in Norway

Opening of new areas for exploration

  • Areas not opened for exploration (NPD)
    • Geological and geophysical data acquisition by NPD
    • Scientific data acquisition
  • Areas opened for reconnaissance (oil companies, contractors)
    • Seismic data, sea bed samples etc.
  • Impact assessment (MPE)
    • Environment, trade and industry, risk of pollution, economic and social effects
  • Ministry proposes opening of areas for licensing
    • Overall consideration of resource potential and impact on society
    • White paper to the Parliament
  • The Parliament opens new areas for licensing
the norwegian continental shelf
The Norwegian Continental Shelf

-30°

-20°

-10°

10°

20°

30°

40°

50°

80°

Basement

JAN MAYEN

RIDGE

70°

Oceanic crust

BARENTS SEA

70°

Basement

NORWEGIAN SEA

Not opened for exploration activity

60°

Not opened for exploration drilling

60°

Opened for expl. drilling on special

conditions

NORTH

SEA

Opened for exploration drilling

10°

20°

30°

RL9803006

  • Total area: 1.4 mill km2
  • Open for exploration drilling: 60%
  • Licensed: 16 % of open area
licensing system in norway3
Licensing system in Norway

Licensing process

  • Licensing strategy
    • Consultation
        • NPD
        • Industry
        • Other authorities
  • Nomination
    • Oil companies suggest blocks for licensing
  • Ministry announces blocks available for application
  • Companies apply
    • Pre 1999: Only single applications
    • Present: Groups and/or single applications
  • New licenses awarded by the Government
the norwegian licensing round
The Norwegian licensing round

Announcement

Nomination

Announcement

Application

Award

Negotiation

NPD performs own evaluations of announced areas. This forms an important basis for the evaluation of applications.

the norwegian licensing round1
The Norwegian licensing round

Nomination

  • Selection of blocks in a licensing round is based on
    • Strategic fit
    • Commercial potential
    • Value of information
    • Industry interest and focus
  • Industry may influence the selection
    • Pre-nomination consultation
    • Nomination of specific blocks and areas
  • Ministry receive nominations of blocks from the companies
    • Ministry and NPD cooperate on evaluating the proposals
    • Ministry design the licensing round
the norwegian licensing round2
The Norwegian licensing round

Announcement

Nomination

Announcement

Application

Award

Negotiation

NPD performs own evaluations of nominated areas. This forms an important basis for the evaluation of applications.

the norwegian licensing round3
The Norwegian licensing round

Announcement of blocks and areas

  • Who can apply
  • List of blocks and areas
  • Conditions for the award
  • Negotiation issues
  • Award criteria
  • Documentation requirements
  • Fee for handling of an application: NOK 60 000,-
  • Application deadline and time of award
the norwegian licensing round4
The Norwegian licensing round

North Sea

Norwegian Sea

Barents Sea

Awards in Predefined Areas

  • Announced in January
  • Application deadline1 October
  • Awards by the end of the year
the norwegian licensing round5
The Norwegian licensing round

Announcement

Nomination

Announcement

Application

Award

Negotiation

NPD performs own evaluations of nominated areas. This forms an important basis for the evaluation of applications.

the norwegian licensing round6
The Norwegian licensing round

The application

  • The blocks applied for
    • Priority
    • Participating interest
    • Operatorship ?
    • Exploration work obligation
    • Duration of initial period and extension period
  • Geological evaluation of the blocks applied for
  • Technical and economic evaluation of the blocks
  • Company information
    • Company structure
    • Technical expertise
    • Safety and working environment issues
the norwegian licensing round7
The Norwegian licensing round

Announcement

Nomination

Announcement

Application

Award

Negotiation

NPD performs own evaluations of nominated areas. This forms an important basis for the evaluation of applications.

the norwegian licensing round8
The Norwegian licensing round

Negotiation issues

  • Extent and content for the work commitment
    • Seismic
    • Number of wells
  • Duration of the initial period
    • Main rule: 6 (up to 10) years
  • Duration of the license period beyond the initial period
    • Main rule: 30 years after the initial period
  • Extent and point of time for relinquishment
    • Main rule: 50 % after the initial period
  • Geographical extent of the licence
    • One block
    • Several blocks
    • Part of block
    • Dependent on the structures
the norwegian licensing round9
The Norwegian licensing round

Announcement

Nomination

Announcement

Application

Award

Negotiation

NPD performs own evaluations of nominated areas. This forms an important basis for the evaluation of applications.

the norwegian licensing round10
The Norwegian licensing round

Award criteria

  • Technical expertise
  • Financial strength
  • Geological understanding
  • Experience
    • NCS or other similar areas
    • Other activities
  • If group application: composition of the group, recommended operator and collective competence
slide18

The Norwegian licensing round

  • The Award – single application – pre 1999
  • The operator
  • The participating companies and their equity
  • The State Direct Financial Interest (SDFI)
  • Earlier: Statoil’s interest

JOINT OPERATION AGREEMENT ACCOUNTING AGREEMENT

the norwegian licensing round11
The Norwegian licensing round

NPD’s role in the application process

  • Evaluation of the blocks and areas
    • Mapping
    • Prospect evaluation
  • Handling of the technical parts of the applications
    • Review geological, technical and economic evaluations
    • Consider companies’ technical expertise, resource management
    • From PSA: safety record and working environment record
  • Rank companies according to award criteria
  • Consider appropriate exploration work obligations
  • Input to the award process in the Ministry
license terms
License terms
  • License period
  • Work commitments
  • Restrictions
  • Partial relinquishments
  • State participation
  • Shift of operatorship
work commitment
Work commitment
  • Seismic acquisition
  • Drilling of wells
  • Contingent wells
slide22

Summary

  • Exploration in phases
    • High authority control and participation in early phases
  • Discretionary system
  • Awards based on technical competence and financial strength
  • Work commitments