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Minerals Report - International Seabed Authority

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applications are invited for a certain number of blocks based on<br />

recommendations by NPD and the industry. She said that the licenses are<br />

awarded based on certain criteria. She said that following the announcement<br />

by the Government, applicants submit a geological evaluation report on the<br />

nominated area. She also said that this report forms an important basis for the<br />

evaluation of the applicant, and for settling the state’s participation in the<br />

project.<br />

Dr. Nyland said that criteria for the award of a license include,<br />

relevant technical expertise, financial capacity, an understanding of the<br />

geology of the area, experience on the Norwegian shelf and other continental<br />

shelves and previous performance, particularly in the region.<br />

Dr. Nyland said that the license terms negotiated include the initial<br />

period, which is normally six years but which in difficult areas could be for up<br />

to ten years, the work commitment consisting of seismic data acquisition and<br />

on term and contingent well. In addition, Dr. Nyland said that the extension<br />

of the license period and partial relinquishment of areas are included in the<br />

license terms. She said that until 1985 STATOIL, which is the national<br />

petroleum company, handled the state’s participation. She said that this was<br />

at a minimum fifty per cent and could rise to seventy per cent. In 1985, Dr.<br />

Nyland said that there was a split of STATOIL and the SDFI was created. She<br />

said that today STATOIL’s share could be zero per cent, while the SDFI<br />

normally gets thirty per cent.<br />

Dr. Nyland said that the drilling programme is a minimum<br />

requirement. She said that after the initial period, fifty per cent of the area has<br />

to be relinquished. After this period, Dr. Nyland said that the area fee kicks in.<br />

She said that this fee is to encourage companies to complete exploration rather<br />

than sitting on the area.<br />

Dr. Nyland said that the release of data is also covered in the<br />

legislation. She said that the Act has also been changed so that reporting<br />

requirements apply to everyone generating information through petroleum<br />

activity. She said that the operator assumes responsibility for information<br />

when a production license is surrendered. Under the law, all material must<br />

be surrendered to the Royal Ministry of Petroleum and Energy or to anyone<br />

INTERNATIONAL SEABED AUTHORITY 809

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