New Norwegian Sea drilling expected

March 1 (UPI) -- Statoil was granted preliminary approval to start a new drilling campaign near an existing oil and gas field in the Norwegian Sea, the government said.

The Norwegian Petroleum Directorate granted Statoil the license to use a deepwater drilling rig for an appraisal well about 6 miles southwest of the Norne field.

"The permit is contingent upon the operator securing all other permits and consents required by other authorities prior to commencing drilling activity," the regulator said.

Norne became a gas exporter to the European market in 2001 and was the first reserve area on the Norwegian continental shelf to use a production ship. When the first production licenses were granted in the late 1980s, Statoil said production costs were among the lowest globally offshore operations.

Twelve people died after a helicopter crashed in 1997 on its way to the Norne production ship.

Statoil is Norway's leading energy company and almost all of Norway's oil and natural gas offshore is exported to the European economy, which is eager to secure more reserves as it looks to break Russia's grip on the energy sector.

The latest figures from the Norwegian government show total preliminary production figures for January at about 2 percent less than December, though total gas sales were higher.

A January review of the European energy market from S&P Global Platts found gas demand for the European Union increased about 6 percent from 2015.