Oil regulation—Norway—Q&A guide

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

  • Oil regulation—Norway—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—Norway—Q&A guide

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

Authors: Kvale Advokatfirma—Yngve Bustnesli

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

Hydrocarbons have been produced on the Norwegian continental shelf (NCS) since 1971, and the oil and gas industry is the single most important contributor to the Norwegian economy. Norway is Europe's second-largest oil producer (after Russia). In 2020, crude oil and natural gas amounted to 40 per cent of the total value of Norway's exports. The base estimate of the Norwegian Petroleum Directorate (NPD) for total proven and unproven petroleum resources on the NCS is about 15.8 billion standard cubic metres. Of this volume, only 49 per cent has so far been produced.

At the end of 2020, 90 fields were producing on the NCS, while a total of 94 discoveries could be considered for development in the future. A majority of these discoveries are small, and could, if proven to be economical, be developed as satellites to existing fields.

Norwegian oil production reached a peak in 2001, when total liquid production (including natural gas liquids and condensate) reached 3.4Mboe/d. The production then declined until 2013 but, since 2014, has been increasing slightly again. The total

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