Faroe Petroleum, the Aberdeen-based oil and gas operator, said yesterday it had been awarded a new exploration licence in the Norwegian Barents Sea.
The company, which focuses principally on exploration, appraisal and undeveloped field opportunities in the Atlantic Margin, the UK North Sea and Norway, said the licence had been awarded in the 20th Norwegian licence round and was its first in the southern part of the Norwegian Barents Sea.
The licence partners are Faroe (20%), BG Group (40% and operator), Statoil (20%) and Wintershall (20%).
A work programme will involve the acquisition of 3D seismic data to cover the licence, with a decision to drill to be taken within three years.
Graham Stewart, chief executive of Faroe, said: “Our team have been working to identify exploration opportunities in the high-potential Barents Sea for some time, and have considerable experience in the area.
“We are very pleased to be working with operator BG, which has an excellent track record in exploration, as do licence partners Statoil and Wintershall, both of whom we have existing partnerships with.
“The Barents Sea is an area which complements our strategic position in the Atlantic margin area west of Shetland and off the Faroe Islands and secures further highly prospective exploration acreage for the company.”
The new licence covers around 347 square miles in an area adjacent to three recent discoveries in wells operated by Statoil.
Faroe entered Norway in 2006 and has established a strong position there.
All Norway exploration and appraisal expenditure benefits from very favourable financing arrangements provided through the country’s attractive tax regime.
