Application for production permit
Annual production, injection, flaring and cold-venting quantities shall be stipulated by the authorities pursuant to Section 4-4 of the (Norwegian) Petroleum Act.
By 1st November of each year, all operators of fields and facilities shall apply for a production permit. The main rule is that an application must be submitted for production permit for all products (oil, gas, condensate and NGL) as well as injection, flaring and cold-venting permit for the coming calendar year. A calendar year is from January 1st through December 31th. If it is expedient, in addition to the calendar year application and pursuant to agreement with the authorities, a separate application for production permit for gas can be submitted for the coming gas year. A gas year is from October 1st of the current year through September 30th of the following year.
The application shall be submitted to the Ministry of Energy with a copy to the Norwegian Offshore Directorate within the relevant deadlines. Guidelines have been prepared for applications for production and injection permit as well as flaring and cold-venting permit. The objective of the guidelines is to describe the requirements stipulated by the authorities as regards content of the application and the process, etc.
In the production permit, the MPE stipulates the quantity that can be produced, injected, flared and cold-vented at any given time, for specific periods, pursuant to guidance and recommendations from The Norwegian Offshore Directorate.
- In connection with start-up of new fields, the application shall be submitted no later than six weeks prior to the earliest scheduled start of production.
- All producing fields shall apply by 1st November of the current year. The permit then applies for the coming calendar year.
- If the field (due to special considerations) has a separate production permit for gas, the deadline is 1st February to apply for production permit for gas for the coming gas year.
- When stipulating the volume in the application, the basis shall be saleable volumes of petroleum (oil, gas, NGL and condensate) reported for the RNB (Revised National Budget).
- For fields with a separate gas permit, there is no need to apply for gas production in the calendar year application.
- Permits for flaring and cold-venting are issued for one calendar year at a time. The permitted volume is granted on a quarterly basis and cannot be exceeded, transferred or distributed in the calendar year.
- Use of gas (fuel) for heating or power generation is not subject to a permit requirement under the Petroleum Act.
- Onshore facilities and installations that require flaring and/or cold-venting, and which are not associated with a field, shall also apply for a permit for flaring and cold-venting.
In the event of deviations in relation to applicable permits
- If production increases by 10 per cent or more in relation to the current calendar year permit, application for a revised permit shall be submitted as soon as possible. If production is reduced by 10 per cent or more, this shall be reported to the authorities.
- Separate gas permits do not have the same 10 per cent flexibility as production permits per calendar year. The granted volume for gas in a separate gas permit is absolute, and in the event of deviations, an application shall be submitted for a revised permit. There is a special system for transferring accumulated gas volumes to the next gas year for fields that have a separate gas permit (carry forward).
- If an expanded quota for flaring and/or cold-venting is required, a substantiated application for a revised permit shall be submitted as soon as possible.
For more detailed guidance and description of the contents of an application, see the guidelines for applications for production permits.