The MPE only allows transfers to pre-qualified entities (see question 3.2 above). The MPE shall assess the potential contribution of the purchaser to the production licence and assess whether the acquirer has sufficient financial strength and technical capacity to participate actively in the oil activities. As a result, early-stage exploration requirements will vary from complex development or production projects. The MPE may also take into account the previous performance of the transferee and other objective and relevant criteria such as national security, public policy, public health, road safety, environmental protection, etc. Licence for the installation and operation of installations The licence for the installation and operation of installations is a right to design, design, construct and operate a plant for petroleum activities which are not carried out on the basis of a production licence (e.B. Processing, storage or transport of crude oil in pipelines). This separate plant licence will be issued on the basis of a submitted plan for the installation and operation of the facilities, and a joint venture structure similar to that of production licences will be established on the basis of the standard contract of the oil agreement. The plant license is issued by the Ministry of Petroleum and Energy, except in cases of significant state involvement or when a contract is required for a cross-border project. Political calls for a „green hijacking“ of an oil-based economy are showing signs that they are influencing political parties.
Carrying out a strategic impact assessment of the expected areas outside Lofoten and Vesterålen in northern Norway before the Stortinget (the Norwegian National Assembly) makes the decision on whether or not to open the area to oil activities seems more remote than ever. There is still strong political support for the sector, believing the value of a predictable and stable regulatory and tax system that will be maintained to attract investment in the NCS and guarantee the resource rent for the state. Parts of the NCS that appear to offer less attractive prospects or higher risks or costs have been offset, inter alia, by mitigating exploration risk, i.e. through the system of reimbursing exploration costs and the significant risk sharing associated with direct State participation in production licences without transfer or other specific economic privileges for the State. Pending the fulfilment of compulsory work obligations, participation in a production licence may not be transferred to an unaffiliated third party without the consent of the management committee of the joint exploitation contract. The State has pre-emptive rights under the same conditions as those agreed between licensees. However, it is assumed that these preventive rights have not yet been used. Agreement on petroleum activities, including seizures: Companies that have obtained a production license are required to conclude an agreement on petroleum activities. The agreement consists of a main part – special provisions – and two annexes; Appendix A – Joint Operating Agreement and Appendix B – Accounting Agreement. These standard documents have been drawn up in two different versions, depending on whether or not the State has retained a share of the production licence in question.
Documents are available here: Norway has only one major LNG production project: Snøhvit on land at Melkøya in northern Norway. Liquefaction is limited to a single train and exports about 3.8 million tons of LNG per year, or about 5% of Norway`s gas exports. In addition, there are small LNG production facilities in southern Norway that serve the consumption of the local market. Approximately 1.5% of ncsc`s annual natural gas production is supplied for domestic use. Production licenses are usually granted to groups of companies (licensees) that are forced to form an unregistered joint venture subject to a standard, non-negotiable oil agreement that includes mandatory joint operating and accounting agreements. Liquid pipelines are not integrated in the same way. Any necessary cooperation will be carried out by the owners of the respective facilities directly with the shippers subject to applicable law, with the conditions of approval of the PIO and the agreements containing terms, conditions and tariffs approved by the authorities. There are no general restrictions on the participation of foreigners or companies in a production license, unless international embargoes apply. However, in June 2016, a new paragraph four was added to Article 10 of the Petroleum Regulation, which states that: Since 2005, Norway has allowed the reimbursement of 78% of exploration costs incurred in one year the following year. The alternative is the carry-forward of losses. The repayment of 100 USD invested in the first year will be repaid the following year with 78 USD. The scheme applies to companies that do not yet have taxable income (i.e.
production) and is intended to serve as an incentive for new NCS players. Cooperation between the owners of the plant is governed by the Gassled joint venture agreement and between shippers. It is managed between the shippers and the system operator via Gassco`s reservation and shipping manuals. The manuals are developed on the basis of the principles and requirements established by the legislation. All Norwegian oil production is based on offshore underwater deposits. Under applicable law, the State is the sole owner of all underwater oil deposits and all activities related to these resources are subject to its jurisdiction and exclusive right to resource management. Ownership of the oil is transferred from the state to the licensees when the oil is extracted from the reservoir. The regulation of conflicting rights of use of maritime space (e.g. B, Fishing, Oil and Shipping) is governed by the Merchant Shipping Act, the Petroleum Act and the Petroleum Ordinance.
The main government permits required for the life cycle of a successful production project (with the exception of the approval of Stortinget (the National Assembly), which are required for important developments), are MPE: applications are evaluated on the basis of publicly available criteria and the production license is mainly based on technical qualifications, relevant experience, financial soundness, geology Understanding of the applicant, proposals for exploration work programs and proposal for participation and activity of the operator. Previous experience with the applicant may also be included in the assessment. Traditionally, natural gas in particular has been used for offshore production. Political pressure to supply new offshore developments with electricity from hydropower plants and, more recently, wind farms has increased. With the exception of a few small LNG storage facilities, there are no onshore natural gas storage facilities. There are no LNG regasification plants in Norway. Natural gas is regularly re-injected into the fields of the production field for printing and intermediate storage. Such reinjection is a central element of the Norwegian philosophy of resource management and a central element of systematic activities to increase or improve oil extraction (IOR/EOR). Several additional permits are required for production permit holders for a number of petroleum activities, including seismic surveys, well drilling, development, construction, site and use of facilities, production, emissions and releases, shutdown of production and decommissioning of facilities. Most licences, permits, permits and consents are generally subject to conditions. 3.1 Approximate description of the legal/statutory and organisational framework for the exploration and production („Development“) of oil and natural gas reserves, including: main legislation; who is entitled to the State`s mineral rights over oil and gas; government body(ies) responsible for regulating oil and gas production; and key current government initiatives or policies (if any) related to oil and natural gas development. Norway has limited refining capacity with only two refineries in operation: Mongstad (Equinor) and Slagentangen (Esso).
Domestic consumption of petroleum products is limited and most petroleum products are exported (75% of Mongstad`s production and 60% of Slagentangen`s production). The legislation and the concessional framework establish the licensing system for all upstream activities (exploration, development, production, transport and decommissioning) resulting from resources and facilities under Norwegian jurisdiction. Norwegian legislation is strongly affected by regulatory developments in the EU implemented by the EEA Agreement. .