Norwegian firm pulls out of mini oil & gas licensing round in North Sea

Norway-based oil and gas company BlueNord, former Noreco, has decided to drop out of a mini oil and gas licensing round for exploration and extraction in a defined area in the Danish sector of the North Sea, where a gas discovery was previously made. 

The mini-round was launched on July 6, 2023, due to the Danish Energy Agency receiving an unsolicited application from BlueNord, which revealed in April 2023 that it had submitted a license application for acreage containing the Elly-Luke gas discovery to participate in the Danish Ministry of Climate, Energy and Utilities’ upcoming mini-round of licensing.

However, things have changed since then. According to the Danish Energy Agency, BlueNord has decided not to proceed as an applicant in the mini-round of licensing for a new oil and gas permit that includes the Elly-Luke discovery. While all oil and gas companies interested in obtaining this permit can apply until October 15, 2023, Blue Nord pulled out on September 25, 2023.

The Norwegian player explains that it decided not to proceed as an applicant in the mini-licensing round after identifying potential technical challenges, going over overall commercial considerations, and undertaking an internal assessment of Elly-Luke in relation to other projects.

As the Danish Energy Agency is currently not aware of any other potential applicants, it has informed the Ministry of Climate, Energy and Supply of this. The Elly-Luke area, which is located in blocks 5504/6 and 5504/10, is said to contain primarily gas and a smaller proportion of condensate. The Danish Energy Agency’s average estimate for the discovery’s gas volume is 5.2 billion m3.

Denmark is taking steps to curb greenhouse gas emissions (GHG) by turning to carbon capture and storage (CCS) to step up its decarbonization game with a new proposal for the next round of CCS tenders of almost DKK 27 billion (around $3.96 billion). As it reaffirms its position as a trailblazer and stronghold for renewable energy, the country hopes this will help pave the way for a carbon-free world.