Press Release

3 December 1998

16th Licensing Round on the Norwegian Continental Shelf

The Government has decided that production licenses will be awarded in a 16th Licensing Round on the Norwegian Continental Shelf in the year 2000.

There will be full competition for all acreage to be announced. The following will be taken into account:

Acreage in the areas Haltenbanken and Dønnaterrassen will be announced.

In areas outside Haltenbanken and Dønnaterrassen, the Government aims to announce acreage close to discoveries made by the time of the announcement of the round.

In the remaining parts of the Norwegian Sea there are at present no plans to announce acreage unless total resource management should prove it necessary.

Prior to announcement, the total extent of the round will be evaluated with respect to the activity level, both the investment level and the production level. In addition, the selection of the acreage to be announced will put great emphasis on issues related to the environment and fisheries. The round will also be evaluated with respect to the commitments under the Kyoto agreement.

- This solution will contribute to good resource management, predictability and opportunities for the industry, while at the same time giving the Government flexibility with respect to the activity level. In the longer term the 16th licensing round will most likely level out the activity by reducing the decline in investments and secureing employment in the industry, says the Minister of Petroleum and Energy Marit Arnstad.

Contact: Sissel Edvardsen, tel. (47) 22 24 61 09