LOTOS secures two new licences in Norway
On January 16th 2018, LOTOS Exploration and Production Norge AS (“LOTOS Norge”) was offered two new exploration and production licences by the Norwegian authorities in the APA 2017 round.
As the final stage of the licensing process at LOTOS Norge, the licences have to be accepted by the company’s governing bodies.
Once the new licences are accepted, the portfolio of the Norwegian subsidiary will expand to 28 licences.
– Once again LOTOS has proven it is able to meet the expectations of the Norwegian Ministry of Petroleum and Energy. The new licences fit perfectly with our strategy to expand our Norwegian operations – said Piotr Statkiewicz, Managing Director at LOTOS Exploration and Production Norge AS.
In the new licence areas, LOTOS will work with Statoil and other partners.
The new licences have proven hydrocarbon reserves and are located in close proximity to the company’s existing exploration and production operations. These areas still contain oil and gas reserves which can be produced with technical infrastructure that is already in place or is currently under construction.
To note, the deadline for submitting licence applications by companies planning to develop operations on the Norwegian Continental Shelf expired on September 1st 2017. From that date until the announcement of the APA results, the Norwegian authorities were analysing the submitted applications and, based on the results of that analysis, offered 75 new licenses to 34 out of 39 applicants on January 16th 2018. Never before had the Ministry received so many applications.
During the APA 2017 round, the Norwegian Ministry of Petroleum and Energy awarded two licences to LOTOS Norge:
1. PL918S, block 24/6, Partner: LOTOS Norge 25%, Operator: Statoil Petroleum ASA 75% 2. PL 910, block 9/2,3, Partners: LOTOS Norge 22.222% and OKEA 16.667%, Operator: Repsol Norge AS 61.111%
In the APA 2016 round, the Norwegian Ministry of Petroleum and Energy awarded five licences to LOTOS Norge.
Strategy for 2017−2022
LOTOS plans to further expand its upstream segment based on the licences it already holds and potential new additions to the asset portfolio. The geographic focus will remain on the Baltic Sea and North Sea. The Company has made it clear that new upstream projects will only be pursed if underpinned in each case by sound economic rationale. According to the strategy, LOTOS expects that by 2022 its daily oil and gas output will range between 30 and 50 thousand boe.
rel (LOTOS SA)