On April 9, the Norwegian Petroleum Directorate marked the 50-year anniversary of the first licensing rules for the Norwegian Continental Shelf (NCS) that were put in place by royal decree. In 1965, 278 blocks were announced in a licensing round. The directorate said that the announcement’s actual date was April 13, 1965.
The 278-block round was the most extensive in Norway’s oil history. Norway's portion of the NCS totals 315 blocks or parts of blocks. The 1965 round only excluded those bordering the median line between Denmark and Sweden. The round included the entire block system south of the 62nd parallel, the directorate added.
June 1965 marked the application deadline. Applicants expressed interest in 81 blocks, 78 of which were awarded to nine companies.
Esso discovered traces of hydrocarbons in Balder in production license 001 (Block 25/11) in 1967. The main field was discovered in 1974, and started production in the autumn of 1999.
Ekofisk became the first commercial discovery after 33 exploration wells. The production license was awarded in the second licensing round, which was announced in 1968. The discovery was made the next year.
The first licensing rules’ objective was to ensure thorough exploration and sound financial returns for Norway. The rules aimed to ensure public control and prudent, technologically safe resource exploitation. Important principles included Norway developing its own expertise, and learning from well to well. The rules also emphasized the necessity of competent stewardship and stable framework conditions.
Hand-colored first Continental Shelf map from 1965. Source: Norwegian Petroleum Directorate
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