Norway looks at oil exploration outside Jan Mayen

Jan Mayen

Norway’s oil production declines quicker than expected and the oil industry will have to look more in the Arctic, if production is to stabilize.

As BarentsObserver reported, Norwegian government in May presented a management plan for the Norwegian Sea that opens up for drilling in new places in the Arctic, among them in the waters around Jan Mayen.

- We have explored an increasingly large part of the Norwegian shelf, Oil Minister Terje Riis-Johansen said. - If we now wish to develop Norway as an oil and gas nation, it will have to be in other areas.

This week Riis Johansen held a seminar on exploration in Arctic areas and led a delegation to Jan Mayen to take a closer look at the possibilities for exploration.

Jan Mayen (Photo Mcce-mil.com)

Extreme exploration

Jan Mayen is a 373 km2 volcanic island in the Arctic Ocean. It is partly covered by glaciers and lies 600 km northeast of Iceland and 1.000 km west of the North Cape, Norway.

The island’s airport has a gravel runway and no instrument landing capabilities, so good visibility is required for landing. Fog and heavy winds can make landing on the island impossible in periods. There are no harbors, so ships must anchor up outside the island.

Jan Mayen has the world’s northernmost active volcano. The last major eruption was in 1970, followed by a lesser one in 1985. Earthquakes shake the island regularly. No wonder that the Irish monk Brendan who discovered the island in the 6th century thought he had found the entrance to hell.

The only inhabitants on the island are 18 persons working for the Norwegian Armed Forces or the Norwegian Meteorological Institute.

Exploration of natural resources outside Jan Mayen would be extremely difficult and expensive.

- The cost entailed due to the technological challenges caused by Jan Mayen’s distance to mainland Norway would require a significant find for any exploration activity to be initiated, Minister Riis Johansen states, web site E24 reports. - The find would probably have to bigger than anything we’ve seen in the past 10 years, should exploration be considered, otherwise the costs involved in operating so far out would be too high.

Norwegian oil companies are also lukewarm to the possibilities of exploration in these areas:

- We have no special opinion on development of Jan Mayen, says Torgeir Anda in Det Norske Oljeselskap. – We are more eager to have larger areas in the Barents Sea opened for searching.

Plant on Jan Mayen (Ill. Bellona.no)

Territory establishment

The environmental organization Bellona, who was represented in the delegation to Jan Mayen, does not believe that the plans for exploration outside Jan Mayen will come to life:

- The plans are only territory establishment and will never be carried through, says Deputy Leader in Bellona Marius Holm to NRK. - Norway just wants to show strength in front of Iceland, who recently opened up for search activities in adjoining sea areas.

Norway and Iceland last year signed an agreement clarifying an accord from 1981 on exploring for oil and gas between Iceland and Jan Mayen, which was annexed by Norway in 1926. Iceland has a head start and started offering licenses this year in the southern part of the so-called Jan Mayen Ridge, for which only two companies applied. Results will be announced in October, Bloomberg.com reports.