Oil regulation—Denmark—Q&A guide

The following Energy practice note provides comprehensive and up to date legal information covering:

  • Oil regulation—Denmark—Q&A guide
  • 1. Describe, in general terms, the key commercial aspects of the oil sector in your country.
  • 2. What percentage of your country’s energy needs is covered, directly or indirectly, by oil or gas as opposed to nuclear or non-conventional sources? What percentage of the petroleum product needs of your country is supplied with domestic production?
  • 3. Does your country have an overarching policy regarding oil-related activities or a general energy policy?
  • 4. Is there an official, publicly available register for licences and licensees? Is there a register setting out oilfield ownership or operatorship, etc?
  • 5. Describe the general legal system in your country.
  • 6. Describe the key laws and regulations that make up the principal legal framework regulating oil and gas activities.
  • 7. Are there any legislative provisions that allow for expropriation of a licensee’s interest and, if so, under what conditions?
  • 8. May the government revoke or amend a licensee’s interest?
  • 9. Identify and describe the government regulatory and oversight bodies principally responsible for regulating oil exploration and production activities in your country. What sanctions for breach may be imposed by the regulatory and oversight bodies?
  • More...

Oil regulation—Denmark—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to oil regulation in Denmark published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Bech-Bruun—Per Hemmer; Johan Weihe; Rania Kassis

1. Describe, in general terms, the key commercial aspects of the oil sector in your country.

Denmark comprises the territories of Denmark, the Faroe Islands and Greenland. Since the mid-1980s, domestic oil production and exploration activity across Danish territory have increased dramatically. In 2016, 16 new licences were granted. In 2004, the first Faroese licensing round was launched. The fifth licensing round was concluded in November 2019 and, as of March 2020, has not resulted in new licences being granted. There are currently no licences in force in the Faroe Islands. So far, drilling operations in Greenland and the Faroe Islands have yielded no production activities. This chapter, however, concentrates solely on the oil regulation of the Danish mainland and its continental shelf. See the chapters on the Faroe Islands and Greenland for details on the other constituent countries of Denmark.

In January 2020, total reserves and contingent oil resources were calculated to be 135 million cubic metres. Denmark is the third-largest oil producer in Western Europe, trailing only Norway and the United Kingdom.

All productive Danish fields are located offshore in the Danish sector of the North Sea.

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