News listings

energy-pedia exploration

Sweden flagSweden

Europe / Caspian / CIS >>> Sweden

Sweden: Svenska to appeal Baltic Sea drilling decision

04 Jun 2009

Photo - see caption

Svenska Petroleum the Swedish energy company will appeal a shock decision from the Swedish government that rejected its bid to drill wells in the Baltic Sea and revoked its exploration permit in promising blocks near the Polish maritime border. “We believe its commercially and morally wrong to allow the import of oil from around the world but not from your own country,” Svenska chief executive Fredrik Öhrn told after the decision.

The prehistoric “reef systems” being explored by Svenska could hold up to 200 million barrels of oil, according to a report on the area and compatriot oil company Tethys in Scandinavian Oil-Gas Magazine in 2008. Öhrn said Svenska would appeal the decision because “The rejection does not answer the quesiton, “Are we allowed to drill exploration wells”, but only that they do not want production offshore Sweden.”

Öhrn suggested that the decision would likely never happen in oil rich Norway, where parliament has never turned down an oilfield project. “It comes down to Sweden having no experience in handling an oil industry,” he said, adding the decision was ostensibly, “Environmental and political.” Svenska had sought drilling permission in the same province where production has been ongoing since the 1970’s and 1980’s.

The decision by the Department of Industry will be appealed in the Consitutional Court in Stockholm, as it is believed a drilling decision for the Baltic must come from the Swedish Parliament, not a government ministry.

Öhrn said he was sympathetic toward the politics of curbing fossil fuel use and cutting emissions, but said the issue was one of “predictability”. The company had received signals of support from government officials “since the late 90’s and beyond. The rejection was a like a shot from the sky,” he recounted.

Swedish politics, focuses alternately on nuclear, renewables and coal-bed gas and is seen by some to have largely forced the scuttling of plans to build a gas pipeline from the North Sea to southern Sweden, Denmark and Poland, the so-called Skanled link. The same politics had once roused voters against a tiny, unmanned maintenance platform in the Baltic.

The decision to block Svenska and a Scandinavian pipeline to Europe bodes ill for the Russo-German gas pipeline Nord Stream, the success of which appears to hinge on Baltic nations not playing politics and the environment card, which they have. Subsea gas pipelines have impeccable environmental records.

Cynics, however, see a revival of drilling off Sweden and the Skanled pipeline once the Gazprom-E.ON pipeline is defeated and regional gas economics again favour local industry.

OPAB, a wholly owned subsidiary of Svenska, operates an offshore concession in Latvia (90%). The Dalders prospect, which stretches across from Sweden to Latvia, is believed to be one of the largest known undrilled prospects in the Baltic Sea. In 2007 an application for license extension and to drill the Dalders prospect in the Swedish economic zone was handed in to the Swedish Government, but was rejected. This means that OPAB will focus its activities on the Latvian side that holds considerable potential. 

In Latvia OPAB has a 90% interest in the E24 license, with the Latvian State holding the remaining 10% as carried interest in the exploration phase. In 2007 new 2D seismic data was acquired over Dalders and adjacent leads. Site-survey data was acquired covering future well locations.


Bookmark and Share

A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.

Subscriber Only Deals

Current deals: 1700
Completed deals: 5220

Company Profiles

Current Company Profiles: 2645

Corporate Activity

Current Corporate Activity articles: 3304

Companies Looking

Current number of articles: 427

Company Sales

Current Company Sales articles:1362


Current Geostudies articles: 643

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...

energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...

energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...


Subscribe to the FREE
energy-pedia Daily Newsletter

count geophysics
RSK Logo 149
SLR Consulting logo
KL Publishing
Government of South Australia
Union Jack Oil 149
Rose & Assocs 149
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans

Tel: +44(0)1727 822675