Norway to continue oil and gas extraction in the Arctic despite EU concerns

Norway's Energy Minister Terje Aasland told Reuters that Norway will continue developing its oil and gas resources in the Barents Sea regardless of whether the European Union maintains its support for a moratorium on Arctic hydrocarbon extraction, Ukrainska Pravda reported, citing Yevropeiska Pravda.

Since Russia's full-scale invasion of Ukraine, Norway has become the largest supplier of natural gas to Europe, covering about 30% of the needs of the EU and the United Kingdom. The EU currently supports a ban on hydrocarbon extraction in the Arctic on environmental grounds, but is considering revising this policy amid growing concerns over energy security.

Minister's position

Aasland said that given today's geopolitical and security conditions, as well as the resource situation, continuing activity in the Barents Sea serves the interests of both Norway and Europe. He noted that Norway aims to keep oil production and exports close to current levels at least until 2035, with Barents Sea extraction playing a key role in that plan.

In talks with EU officials, Norway has argued that the parts of the Barents Sea open to oil activity are as ice-free as the North Sea, making them less prone to oil spills and other environmental impacts. Aasland said he believes Norway's arguments are being heard in Brussels, but added that developing Barents Sea resources remains the country's sovereign right regardless of whether the EU keeps its moratorium in place. He said Norway will develop these fields, and the EU will then decide for itself whether to impose a moratorium on buying that gas or oil.

In May, Norway's government announced the resumption of development at three gas fields that had been closed for three decades, and also offered a significant number of new areas for oil and gas exploration. In February, Ukraine's Naftogaz signed an €85 million grant agreement with the European Bank for Reconstruction and Development, covering funding from the Norwegian government to purchase imported gas.