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Norway awards exploration permits to 20 companies

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Must drill to uphold oil, gas output, energy minister says

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Also prepares for more Arctic exploration

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Demonstrators, including Thunberg, protest against move

(Adds quote, outlook for more Arctic drilling, Greta Thunberg

comment in paragraphs 1, 3, 7, 13-14)

By Nora Buli

SANDEFJORD, Norway, Jan 14 (Reuters) - Norway on Tuesday

awarded stakes in 53 offshore oil and gas exploration licences

to 20 companies in its annual licensing round, and announced

plans for increased drilling in its offshore Arctic region, the

energy minister said.

The annual award fell from 62 licences awarded one year ago

while the number of oil and gas firms receiving permits declined

from 24.

"If we are to uphold a stable production in the years to

come, we must explore more and invest more," Energy Minister

Terje Aasland told a conference.

The annual predefined area (APA) rounds of new offshore

exploration acreage are central to Norway's strategy of

extending oil and gas production for decades to come, a policy

that is fiercely opposed by environmental groups.

Three of them, Extinction Rebellion, Grandparents for

Climate and Greenpeace, demonstrated on Tuesday, along with

activist Greta Thunberg, by blocking nearly all the entrances to

the hotel where the energy minister made the announcement.

Some 60 people protested, carrying banners that said

"Norwegian Oil Kills" and "Phase Out Plan Now".

"We are in a fast escalating climate crisis, which is

threatening us and everything that we love. We have a moral

responsibility to act," Greta Thunberg told public broadcaster

NRK.

Norway became Europe's largest supplier of natural gas

following Russia's invasion of Ukraine in 2022, providing about

30% of all gas imports to the European Union. The country also

partly replaced Russian oil barrels banned by the EU.

The latest round awarded 33 licences in the North Sea,

up from 29 one year ago.

Another 19 licences were awarded in the Norwegian Sea,

down from 25 permits a year ago, while only one licence was

awarded in the Barents Sea, down from eight.

In May, the government added 37 new blocks in the latter two

areas, arguing more exploration was needed to help maintain

Norwegian petroleum production in the future.

State controlled Equinor ( EQNR ) was awarded stakes in

27 licences, including seven it will operate, while the

second-largest listed oil firm, Aker BP ( AKRBF ), received

stakes in 19 licences, including 16 it will operate, the

ministry said.

The energy ministry said it would also launch the next

APA around, this time focusing on the Arctic, by proposing to

expand 76 blocks - of which 68 are in the Barents Sea and the

remainder in the Norwegian Sea.

Awards for that round would be announced in January

2026, it said.