08:30 Registration and coffee 09:00 Framework and role of authorities Petroleum management and framework The NPDs mission, roles and organisation The petroleum regulations in brief Eldbjørg Vaage Melberg Kirsti Herredsvela 09:45 Economics Helge Sandvig Thorsen 10:15 Questions and coffee break 10:45 Production licence Licensing round and award Follow-up of production licences in the exploration phase 11:30 Questions and lunch 12:15 Development and operations Follow-up and initiator role Development Production Cessation 13:35 Questions and coffee break Janka Rom Knut Henrik Jakobsson Astri Fritsen Tarjei Woldstad Ann Helen Hansen Kirsti Herredsvela 14:00 Reporting and applications Elin Aabø Lorentzen 14:30 Revised national budget (RNB ) Bente Jarandsen 14:50 Questions and conclusion The Norwegian Petroleum Directorate Course: the NPD's tasks and roles Valhall, the Norwegian Petroleum Directorate Stavanger, 15 November 2017
Production licences licencing rounds Janka Rom 15 November 2017 Photo: Husmo, ConocoPhillips, the Norwegian Petroleum Museum
OPENING OF NEW ACREAGE LICENCING ROUND Licence cycles opening to award phase Authorities Drilling permits Annual production licence Application Consent Production licences BOK BOV PDO Decommissioning plan Award INITIAL PERIOD 4-10 ÅR Exploration drilling and delineation Seismic acquisition DG1 DG2 Concept studies Implementation phase Development plan DG3 EXTENSION PERIOD 20-30 (50) years Production Cessation 3
Predictable licencing system Access to exploration acreage through awards in licencing rounds: Numbered rounds Frontier areas Every other year Awards in Pre-defined Areas (APA): Mature areas with infrastructure and exploration history Annual awards
Licencing round - milestones Numbered round Late autumn Winter/spring Summer Winter Winter Spring < NPD s own geological mapping > Nomination Public consultation Announcement Application evaluation Negotiations Awards Winter Autumn Autumn Winter APA 5
Nomination of blocks The companies submit 1-2 pages for each area they nominate Limited, but important information Basis for acreage that will be announced The NPD advises the MPE Not mandatory Not binding for the companies 6Nomination Public consultation Announcement Application evaluation Negotiations Awards
Announcement List and map of announced acreage Award criteria Guidelines required documentation in the applications Application deadline and date of award Detailed guidelines at www.npd.no Section 3-5 of the Petroleum Act Section 7 of the Petroleum Regulations 7 Nomination Public consultation Application evaluation Negotiations Awards Announcement
Mapping and evaluation before application deadline Provides important basis for own understanding of geology and the resource potential evaluating the applications understanding the uncertainties in critical factors for the prospects advising the MPE on acreage and work commitments 8 < NPD s own geological mapping > Nomination Public consultation Announcement Application evaluation Negotiations Awards
The NPD s focus areas when evaluating applications Database Geological understanding Satisfactory prospect mapping Realistic resource estimates and risks Relevant work programme and exploration strategy Understanding of the area and proposed development solution 9Nominations Public consultation Announcement Application evaluation Negotiations Awards
Award criteria Technical competence Financial capacity Geological understanding of area applied for Experience on the Norwegian continental shelf or from other areas Section 10 of the Petroleum Regulations 10Nomination Public consultation Announcement Application evaluation Negotiations Awards
The NPD s advice for the MPE*: Application Acreage Area evaluation Design of new acreage Work programme Licensees SDFI-share *The NPD advises, the MPE decides 11Nomination Public consultation Announcement Application evaluation Negotiations Awards
Work commitment Proposes the best exploration of an area Multiple phases in one work commitment Different work commitments in mature and frontier areas Clearly defined structure with good 3D coverage: firm well Complex and poorly defined prospect with old 3D coverage: reprocessing or acquire new 3D, make drilling decision Good data (well and seismic): only G&G work before drilling decision Propose duration of initial period and extension period Sections 3-8 and 3-9 of the Petroleum Act Section 13 of the Petroleum Regulations 12Nomination Public consultation Announcement Application evaluation Negotiations Awards
Negotiation meetings The authorities present acreage and work commitments for new production licences Negotiation topics: Production licence area Work programme Duration of initial and extension periods Participating interest and role (operator/partner) 13Nomination Public consultation Announcement Application evaluation Negotiations Awards
Award by the Government licence documents Production licence -> governs the relationship between the authorities and licensees Operator and partners, and participating interest SDFI State Direct Financial Interest Licence area Work commitment, duration, schedule Terms for licence surrender Environmental and fishery terms Petroleum activities agreement -> governs the relationship between the licensees General agreement - comprises Joint Operating Agreement Accounting Agreement Nomination Public consultation Announcement Application evaluation Negotiations Awards 14