Minerals Report - International Seabed Authority

Nor does it give rights or priority to exploit possible natural resources. After
the termination of the research, a report must be submitted concerning the
extent and the execution of the research. In addition, within a reasonable
period, a detailed report on the results of the research must be submitted and
published.
When an area has sufficient regional data coverage and after
environmental assessment studies, Parliament can open the area for industry.
In areas opened for general exploration activity, companies can apply for a
reconnaissance license to undertake geological, petrophysical, geophysical,
geochemical and geotechnical surveys, including shallow drilling. This
license grants no exclusive rights in the areas covered and does not entitle the
holder to conduct regular exploration drilling. Areas covered by production
licenses are closed for exploration under a reconnaissance permit. As soon as
possible after the individual activities the licensee shall submit data, records
and results from the activity to NPD.
By far the most important license to obtain is the production license.
The license confers an exclusive right to the license holder for exploration,
drilling and production of petroleum. The licensed area is granted to oil
companies for a certain period. A production license permits the holder to
drill exploration wells. Before a production license can be awarded, the area in
question must have been opened for exploration. That can only happen after
the environmental, economic and social impact of such operations on other
industries and adjacent regions has been assessed. A phased opening of the
continental shelf to exploration and restrictions on the number of blocks
awarded in each licensing round have been used to maintain a moderate pace
in the activity level.
Production licenses are normally awarded through licensing rounds.
The Government invites applications for a certain number of blocks. Areas to
apply for are announced by the Ministry based on recommendation from
NPD and the industry. Criteria for announcing areas are that they cover
several play types in order to increase the probability of discovery, have
favourable geological conditions, are representative of neighbouring areas
and have sufficient size. Production licenses are awarded on the basis of
INTERNATIONAL SEABED AUTHORITY 794