Norway Renews Commitment to Offshore Oil & Gas With 57 New E&P Leases

Though Norway may be known best for leadership in green solutions like electric ferries and carbon sequestration, it remains firmly committed to oil and gas E&P, its energy minister reaffirmed this week. The ministry has just approved 57 new offshore energy licenses in the North Sea, Norwegian Sea and Bering Sea, which will help to extend the time horizon of its regional leadership in energy production.

"Norway is Europe’s most important energy supplier, but in a few years production will begin to decline. Therefore, we need new projects that can slow the decline and deliver as much production as possible," said Minister of Energy Terje Aasland in a statement. "That activity is important for jobs, value creation, and Europe's energy security."

Offshore energy has strong mutual benefits for Norway and for Europe. In the wake of the Russian invasion of Ukraine, Norwegian natural gas has become more important to EU energy security than ever. Norway now accounts for about one third of all EU gas imports; Russia is now in second place, providing only 12 percent as of 2024 (from pipeline and LNG import pathways combined). In turn, oil and gas revenue provides the Norwegian state with about $60 billion in revenue each year, and it underpins the vast wealth of Norway's $2 trillion Government Pension Fund - the world's largest sovereign wealth fund. About 200,000 Norwegians are employed directly or indirectly by the domestic petroleum sector.

This round of licensing awarded leases to 19 different companies for areas on the Norwegian continental shelf, including five leases in the Barents Sea. 13 firms hold operator status. Participants include Equinor, ConocoPhillips, Aker BP, TotalEnergies, Repsol and a wide variety of independent producers. To keep the leases, the holders will have to execute a work program to explore and develop their claims.

Oil prices are at an ebb compared to recent years, but interest in the lease auction remained strong. Aasland said that the high turnout among bidders showed "faith in the opportunities that lie in further exploration" in the region.

Climate advocates protested the awards. On Tuesday, activists from Greenpeace, Extinction Rebellion, Nature and Youth and other groups gathered outside of the meeting hall for the award ceremony to demonstrate their opposition.

"We have just left behind the warmest year ever measured. The fact that the government chooses to respond to this development by handing out even more oil licenses is a threat to our future," said Elise Åsnes, advisor at Greenpeace Norge.