Record interest in Norway’s mature oil fields

* Big five oil majors apply for licences

* Total of 47 applications

* Several newcomers on the list

Norway has received a record number of applications to explore mature oil areas offshore, with companies apparently spurred by high prices and good prospects for extracting new resources more cheaply from developed fields.

The Norwegian Ministry of Petroleum and Energy said on Friday that 47 companies, including two majors which did not apply last year, were interested this year in exploration licences in predefined areas (APA 2012).

The licences are expected to be awarded in January 2013.

In last year’s APA round, 43 applications were made, 42 of which were awarded.

“We see that there is competition for acreage that has been awarded and relinquished several times previously,” said Sissel Eriksen, director for exploration at the Norwegian Petroleum Directorate (NPD).

The licensing round does not include unexplored areas in the Barents Sea and Norwegian Sea, which are offered separately. Those licences are to be announced next year, with Norway planning to award oil and gas exploration drilling permits in up to 86 blocks, mostly in the Arctic.

“Exploration results in recent years have shown that there is still significant potential for discovering new resources, also in mature areas. This is reflected in the record interest shown by the oil companies in APA 2012,” the Minister of Petroleum and Energy, Ola Borten Moe, said.

The discovery of the extensive Johan Sverdrup field in the North Sea, high oil prices and the Norwegian government’s 78 percent refund of exploration costs have increased interest in the country’s mature areas in recent years.

Discoveries in mature areas are normally quicker and less expensive to develop than in less explored locations as oil companies can take advantage of existing facilities nearby.

“This adds to a growing list of good news about the Norwegian shelf this last year,” said Erik Bruce, chief analyst at Nordea Markets.

“We are most likely going to see record investments in Norway in the coming years… big companies are showing an increased interest for these mature areas as the oil price is so high,” he added.

Norway expects oil and gas investment to hit 204 billion Norwegian crowns ($34.91 billion) next year, beating what is forecast to a record 185 billion in 2012, and could go even higher as the figure does not include projects which are anticipated but not yet approved.

Among the applicants for mature licences were the “big five” oil companies – Shell, BP, Chevron, ConocoPhillips, Exxon Mobil and Total – as well as Norway’s Statoil and Italy’s Eni.

New applicants who did not take part in last year’s mature licensing round include BP, Chevron, Core Energy, EnQuest , Explora Petroleum and Petrolia.

Reuters