Shell in Norway: Focus on Gas and Offshore Wind


February 9, 2021
Shell Logo - Credit:Alexandr Blinov/AdobeStock

Shell Logo - Credit:Alexandr Blinov/AdobeStock

Royal Dutch Shell will narrow its exploration scope in Norway to focus on natural gas production and possibly offshore wind in future, it told the Norwegian oil and energy ministry.

Shell said in October it planned to reduce its oil and gas operations to nine basins around the world as part of its strategy to reduce the carbon intensity of its operations. It is expected to announce details of its new strategy on Thursday.

"In 2020, we have made a choice to focus exploration activities in Norway going forward to areas around existing discoveries and infrastructure," it said in a letter on the ministry's website, published as part of a public consultation for a government report on energy policy.

"That means that we now primarily position ourselves as a gas company on the Norwegian shelf ... This is a business that in the coming decades will create significant value for us as a company and Norway as a nation," it added.

Shell said in the letter it might take part in offshore wind power developments off Norway, calling the government to consider tax incentives to spur investments.

A Shell spokesman said the firm did not rule out taking part in future licensing rounds in Norway's frontier areas.

The Anglo-Dutch major operates Norway's second-largest gas field Ormen Lange, and is a partner in the Equinor-operated Troll field.

It also provides technical service at the Nyhamna plant, which processes natural gas from several fields for export to Britain and continental Europe.

Shell's decision comes as Norway seeks bids from oil firms in its latest frontier areas licensing round, which includes more than 100 new blocks in the Arctic Barents Sea.

In 2016, Shell pulled out of Norway's Arctic-focused oil licensing round, citing a need to adjust its portfolio after merging with BG and due to low oil prices. It took part in the next frontier areas round and was awarded one operatorship in the Norwegian Sea in 2018.

Norway holds separate licensing rounds in the mature areas. 

(Reporting by Nerijus Adomaitis; Additional reporting by Ron Bousso in London; Editing by Edmund Blair)

No comments

More Popular Posts

About Crude Oil Facilitators

Crude Oil Facilitators are dedicated global brokers and facilitators of crude oil buying and selling. We work directly with crude oil buyers and crude oil sellers worldwide. We are a United Kingdom and Nigerian based firm, privately owned and devoted to the brokering of crude oil and other petroleum products buying and selling.

We have buyers and sellers of;

1. Nigerian Bonny Light Crude Oil, BLCO

2. D2 Diesel Fuel, JP54 Jet Fuel, Mazut etc.

3. Saudi Light Crude Oil, SLCO

4. Iraqi Light Crude Oil

If you are a buyer or seller of crude oil or other petroleum products or have mandate to buy or sell any of the above oil products, do contact us because we could be of help.

To contact Crude Oil Facilitators, click here ». To learn more about Crude Oil Facilitators, click here

Crude Oil Facilitators