Minerals Report - International Seabed Authority

licensed areas. Dr. Nyland stated that petroleum operations play a substantial
role in the Norwegian economy and contribute a major share of the revenue to
the state. Norway ranks as the world’s second largest exporter of crude oil
after Saudi Arabia. She also said that Norway is the world’s tenth largest
exporter of gas and supplies 10 percent of Western Europe’s consumption.
With regard to production, she pointed out that petroleum operations
in Norway are mainly in the North Sea that has been divided between
Norway and its neighbours using the median line principle by agreements
with the UK and Denmark in 1965. The border with Russia in the Barents Sea
is still under negotiation. With regard to licensing, she stated that the
Norwegian continental shelf is divided into quadrants each comprising 12
blocks covering 15 minutes latitude and 20 minutes longitude. The average
area of a North Sea block is around 600 sq km. A licensee can cover more
than one block.
Dr. Nyland said that the Petroleum Act of 1996 specifies that the
proprietary right to regulate petroleum deposits in the Norwegian continental
shelf be vested in the State. The Act regulates petroleum operations, the
granting of permits and licenses to explore, produce and transport recovered
materials. She said that the procedural requirements are detailed in the Act.
In areas not available for exploration activities, the Norwegian Petroleum
Directorate can undertake regional geophysical and geological investigations
for the purpose of understanding the geological conditions and hydrocarbon
potential of such areas. Dr. Nyland informed participants that a scientific
research license can be granted to Norwegian or foreign scientific institutions
through a permit which would normally cover one particular investigation.
The permit is generally free and allows licensees to carry out geophysical and
geological surveys. The permit does not confer any exclusive right to
undertake research in the areas covered by the permit. It also does not give
any right or priority to exploit possible natural resources. Upon conclusion of
the surveys, a report must be submitted on the extent and execution of the
research including the results, and must be published. Dr. Nyland pointed
out that it is only in areas where sufficient regional data are available, and
after environmental assessment studies, that the Norwegian Parliament can
open the area for general exploration. In such cases, companies can apply for
the reconnaissance license for geological, geophysical, petrophysical,
INTERNATIONAL SEABED AUTHORITY 61