Awards: Three companies offered acreage to store CO2
On 5 April 2022, three companies were offered exploration licences to store CO2 in two areas on the Norwegian Continental Shelf. One area in the North Sea and one in the Barents Sea were announced in September last year, and the authorities have assessed applications from five companies.
The first awards were through the Longship project in 2019. Now the Northern Lights company is well under way with its work to develop infrastructure for the storage part of Longship.
"We're experiencing significant interest in storing CO2 on the Norwegian shelf," says Erik Rundell, Assistant Director for technology, analysis and coexistence in the Norwegian Petroleum Directorate (NPD).
This award shows that CO2 storage is relevant for traditional energy companies as well as new players in an offshore activity that requires different business models than oil and gas projects.
"The access to large volumes of data from 50 years of petroleum activities is a crucial factor for succeeding in this new industry," says Rundell.
The award in the North Sea is offered to Equinor ASA, whilst the permit in the Barents Sea is offered to a group including Equinor ASA, Horisont Energi AS and Vår Energi AS.
The NPD started the effort to define potential storage locations for CO2 on the Norwegian shelf more than ten years ago. This effort resulted in an CO2 atlas which shows that it could be possible to store more than 80 billion tonnes of CO2 on the shelf. This is the erundquivalent of more than 1 000 years of current Norwegian CO2 emissions.
There are vast proven gas resources on the Norwegian shelf which are currently without development plans. Much of this gas is located in tight reservoirs – which makes it difficult to produce.
The Norwegian Petroleum Directorate (NPD) has conducted a mapping of gas resources that, for various reasons, have yet to be developed. Several of these discoveries could be produced in a manner that is profitable from a socio-economic perspective.
The Norwegian Petroleum Directorate (NPD) has granted Harbour Energy Norge AS drilling permit for well 15/9-25 in production licence 1138, cf. Section 13 of the Resource Management Regulations.
The Norwegian Petroleum Directorate (NPD) is changing its name to the Norwegian Offshore Directorate as of 1 January 2024. The new name reflects the additional responsibilities assigned to the directorate in recent years.
The Norwegian Petroleum Directorate (NPD) has granted Equinor Energy ASA drilling permit for well 35/11-28 S in production licence 248 C, cf. Section 13 of the Resource Management Regulations.
The Norwegian Petroleum Directorate (NPD) has granted Neptune Energy Norge AS drilling permit for well 35/6-4 A in production licence 929, cf. Section 13 of the Resource Management Regulations.