Rig shortage slows Norwegian growth

Norway's exploration drive has been hampered by a 'dearth of rigs', according to Up Stream, with a 'rig bottleneck' of legislation hindering excavation in the area.

Exploration and appraisal numbers are set to remain flat in 2012 in contrast to the booms experience in the area in 2010 and 2011. 54 exploration and appraisal wells were found last year, and 41 in 2010, but this year will see a levelling off as strict legislation restricts many rigs from operating in the area.

A task group has been set up to discuss how these stringent laws can be alleviated in order to explore exciting frontiers in the future, most noticeably in the Barents. This would add to the discoveries that have already been made, such as Avaldsnes-Aldous in the North Sea as well as Skrugard and Norvarg in the frontier Barents Sea.

Cost has also been cited as a reason for the lack of potential exploration. Oil companies are now looking to order oil rigs on their own account to counter the high rig charter rates and overrunning costs on complex projects.

Posted by Lauren Steadman