Norway's offshore operators believe their territory is among the most prospective in the world.
Money and expertise are available to sustain a high level of exploration, but activity remains disappointingly low.
At last count there were only eight rigs on exploration and appraisal assignments off Norway, compared with 38 across the line in British waters.
The reason is simple: Norwegian operators have been starved of drillable acreage by Oslo's policy of restricting the number of blocks offered in each licensing round.
A DIFFERENT ROUND
Norway's latest round, the 13th, promises to be different. Fifty-two blocks are available, the biggest single offering since the first two rounds in the 1960s.
Acceptance of applications for blocks will close in September.
At this stage of the licensing ritual companies that feel they are particularly deserving of special treatment-which in Norway is everyone-begin the lobbying process.
Making a case for operatorships of prime blocks is essentially a private dialogue with the government, but in Norway companies are increasingly willing to go public on the need for more and better licenses.
The latest company to bare its corporate soul is BP Norway. After successfully placing Gyda oil field on stream ahead of schedule and under budget, the company disclosed that Norway fills the No. 2 spot, after Canada, in the BP group's country by country evaluation of undiscovered resources.
BP reckons there are 6-7 billion bbl of liquids still to be found in Norway. And to ensure that BP lays hands on as much of this oil as possible, the local affiliate plans an aggressive new strategy for the 1990s.
The company will bid for North Sea as well as frontier blocks north of the 62nd parallel in the 13th round and says it will be disappointed if it does not win operatorships for at least two tracts.
BP Norway has a 12 month contract on a semisubmersible that will start work shortly on a small satellite south of Gyda that could be tied back to the new Gyda platform. Exploiting satellites will be a key element in BP's development strategy.
ACREAGE INVENTORY
While trying to acquire new acreage, BP also is starting to rationalize its existing portfolio. Ten of the company's 20 licenses could be involved in exchanges or sales.
Norske Shell recently disclosed a similar exercise, and other companies are likely to be drawn into repositioning their exploration and development efforts.
BP's repositioning will start with the sale or exchange of its 4.4% interest in Brage oil field operated by Norsk Hydro in Block 31/4. It is undergoing a $1.3 billion development program and due to produce first oil in 1993. BP's share of Brage reserve is about 10 million bbl.
The company also is close to a deal on its 50% interest in one of two blocks containing Hild gas/condensate field, also operated by Norsk Hydro, on the U.K. line about 28 miles north of Frigg field.
Copyright 1990 Oil & Gas Journal. All Rights Reserved.
