DEA gets five more licenses for Norwegian offshore blocks
MOSCOW. Jan 17 (Interfax) - DEA, which is owned by Mikhail Fridman's LetterOne, received five licenses to develop hydrocarbons on the Norwegian continental shelf in the Award in Pre-Defined Areas 2017 (APA 2017) licensing round on January 16.
The Norwegian Ministry of Petroleum and Energy (MPE) said in a statement posted on its website that DEA received a 20% share in Block PL 929 in the North Sea, where its partners will be France's Engie (operator, 40%) and Norway's Pandion Energy (20%) and DNO Norge (20%). Also in the North Sea, DEA received 8% of Block 153C, where Engie is also holds operatorship but with 30%, and where the other partners are Norske Shell with 12% and Wintershall Norge with 20%.
In the Norwegian Sea, DEA received a 15% share in Block PL 832B, which it will develop together with Norske Shell (operator, 45%), Norway's state-owned Petoro (20%) and Spirit Energy Norge (20%); and a 30% share in Block PL 937, which will be developed in conjunction with Switzerland's Ineos E&P Norge (operator, 40%) and Norway's Petrolia Noco (30%).
In the Barents Sea, DEA received a 30% share in Block PL 533B, which it will develop jointly with Lundin Norway (operator, 35%) and Aker BP (35%).
DEA currently holds 54 licenses for Norway's shelf.
The APA licensing rounds cover the most explored areas on the Norwegian shelf, the MPE said. One of the primary challenges in mature areas is the expected decline in discovery size. Minor discoveries will not be able to carry standalone developments, but may have good profitability when they can exploit existing and planned processing equipment and transportation systems, or be seen in context with other discoveries or planned developments. Timely discovery and exploitation of such resources is therefore important, the ministry said.