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Following award, the production licence generally remains in effect for an initial period (exploration period) of between four and eight years, with a binding work programme in several time-limited phases.
In the first phase, the work programme could be acquiring new seismic, and the next phase could be drilling an exploration well. Applications and reporting for the production licence are stipulated in the licence document for the individual licence.
After each phase of the work programme, the licensees must decide within the applicable deadline whether they want to continue the licence on to the next phase. The requirement for continuing is that the work commitment is completed and approved. The decision must be reported to the Ministry of Petroleum and Energy with a copy to the Norwegian Petroleum Directorate. Notification on a decision shall be submitted via the SMIL web portal. If a decision is not made by the deadline, the production licence lapses. Information about the work programme and status of individual production licences is available on the NPD Factpages.
If more time is needed to carry out the work programme before deciding to proceed to the next phase, licensees can apply for postponement of specific deadlines in the work programme. Applications are submitted via the SMIL web portal.