Norway resumes search for more oil

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The Scandinavian nation, Norway, declared on Tuesday that it is putting about 92 petroleum exploration blocks on auction as the country shocks environmental NGOs with an “aggressive” promotion of fossil fuels.

The announcement came as part of the annual granting of oil licences in so-called “mature” zones that have already been widely explored.

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Norway is currently Europe’s primary natural gas supplier and a major oil producer, but has in recent times joined the global movement towards energy transition. It has also ploughed substantial proportion of its huge sovereign wealth fund into development of non-fossil energy.

But on Tuesday the government surprisingly declared plans for licensing round that would see 92 exploration blocks, including 78 in the Barents Sea in the far north and the other 14 in the Norwegian Sea near the Arctic Circle.

Oil and Energy Minister Terje Aasland said in a statement that the “New discoveries remain necessary to continue to develop the Norwegian plateau” and are important for Europe.

The centre-left government, lacking a parliamentary majority, reached an agreement with the Socialist Left party last year to forbid prospection in unexplored areas by 2025.

The government’s propositions sparked outrage among environmental organizations.

Head of the Norwegian branch of Friends of the Earth, Truls Gulowsen, condemned an “extremely aggressive” cycle of concessions presented as the United Nations and the International Energy Agency discourage further oil exploration to achieve climate goals.

The NGO said the proposal would violate the commitment not to explore virgin territory as some blocks were to be located far from existing infrastructure.

The right-wing opposition, a fervent defender of Norway’s oil sector, said the move was a “tactical game” by the government to give itself bargaining chips to use in future negotiations with the Socialist Left.

Oil industry body Offshore Norge welcomed the fact that “attractive areas” would be opened to prospection.

The proposals will go to a public consultation. Oil companies must submit their applications later this year and licences will be granted in January 2024.

The Barents Sea has long been seen as a productive area for the energy sector, but oil and gas extraction is so far only taking place at two sites in Norwegian waters.

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