Statoil to drill in new Barents Sea prospect

June 7 (UPI) -- Norwegian energy company Statoil can move ahead with a drilling program in the Barents Sea targeting frontier territory, the government said.

The Norwegian Petroleum Directorate gave a drilling permit to Statoil to start drilling off the northern coast in a well designated 7219/9-2.

"The drilling program for well 7219/9-2 relates to the drilling of a wildcat well in production license 532," the regulator said.

A wildcat well refers to one designated for an area not previously confirmed as containing oil or natural gas reserves.

Apart from Russia, Norway is the lead oil and natural gas exporter to the European market, designating nearly all of its offshore production for European Union demand.

In April, the NPD said new data from eastern and northern parts of the Barents Sea, areas previously a source of dispute with Russia, led to upward revisions of the reserve estimate by up to 65 percent. The region in general is already expecting a record this year in terms of the number of exploration wells at 15, up two wells from the previous record in 2014.

At least three new developments are planned for the Barents Sea, with the Johan Castberg highlighted as one of the more significant. The field has estimated proven reserves of between 400 million and 600 million barrels of oil and the NPD said the upward revision for the Barents Sea is roughly equivalent to 14 Johan Castberg fields.

The NPD said the new permit for Statoil is contingent on consent from other regulatory authorities.