Every second year, the Norwegian Petroleum Directorate provides an up-to-date overview of the oil and gas resources on the Norwegian continental shelf. The 2009 Resource Report believes that large discoveries can still be made in areas of the Norwegian shelf that have not been extensively explored.
The Barents Sea, however, is an area where the recent year’s optimism regarding estimated recoverable resources may change to slightly more scepticism among the big players that want to drill for oil and gas.
The updated Barents Sea estimates have been reduced from 1030 million Sm3 oil equivalents to 910 million Sm3.
The Norwegian Petroleum Directorate writes in the report that estimated volumes of oil and gas in the ground have increased somewhat, but the recognition of poorer reservoir properties than expected, distance to the market and costs associated with development solutions have reduced expectations for the percentage of these resources that can be produced.
So far, the Goliat field north of Finnmark is the only oil-field in the Norwegian part of the Barents Sea that has got approval to be developed from the Norwegian Parliament. The reserves at Goliat are estimated to 200 million barrels.
The Snøhvit field near Hammerfest in Finnmark is the only gas field in the Barents Sea currently in operation.
In the eastern part of the Barents Sea, the Russian Prilazlomnaya oil field will soon start production with its reserves estimated to be 100 million tons.
BarentsObserver reported in July that the Russian government has approved new legislation which is intended to boost oil and gas investments in the country’s Arctic shelf. The current numerous permissions required to engage in the offshore projects will be abolished and replaced by extended license agreements.
