Danish North Sea Agreement continues unchanged after dropped tender round

On Monday, the oil company Bluenord decided to withdraw its application for gas and oil extraction in the North Sea.
Photo: Hannah Aurora Almstrup
Photo: Hannah Aurora Almstrup
by ritzau

Not a single comma will be moved in the North Sea Agreement, which was signed by a political majority in the Danish parliament in 2020, says Minister for Climate, Energy and Utilities Lars Aagaard (M) after a meeting with the parties to the agreement on Tuesday.

The meeting took place after the government put a stop to a new mini-tendering round for gas and oil extraction in the Elly-Luke field in the North Sea.

This is a consequence of the oil company Bluenord’s decision on Monday to withdraw its unsolicited application for exploration and production in the field.

However, new mini-tendering rounds will still be possible in the future, says the minister.

”I have asked the parties whether they still saw themselves as part of the North Sea Agreement, and this was confirmed by all of them,” says Aagaard.

”Then there are different opinions in the compromise group on how to deal with mini tenders. There are parties who believe that it is a prerequisite for the agreement, and thus it remains.”

”Then there are others who think it shouldn’t be. This is often the case when you enter into agreements. There’s something you’re happy with and there’s something you’re not happy with.”

”From the government’s side, we do not believe that there is a basis for opening the North Sea Agreement. We are not aware of anyone who is in the process of submitting new applications. If someone were to do so one day, it would be a concrete assessment in that situation,” says the minister.

With the 2020 North Sea Agreement, the Danish Parliament set an end date for oil and gas extraction in 2050. The agreement was made by the then Social Democrat government along with the Liberal Party, the Social Liberal Party, the Danish People’s Party, the Green Left and the Conservative Party.

The agreement left the door open for new licenses to be issued before then to ensure long-term conditions for the industry towards the end date. This is the option Bluenord offered in April.

The now closed mini tender attracted criticism from both opposition parties and green organizations.

The Green Left, the Conservatives and the Social Liberals, who are all part of the North Sea Agreement, have called on the government to stop all new gas exploration in the North Sea. In other words, shut down the option of mini-tendering rounds.

Criticism has focused on the fact that the new tender would risk Denmark’s reputation as a green role model. Especially in light of the fact that Denmark is a co-founder of the international alliance Boga, where countries dedicate themselves to preventing new oil and gas exploration.

Aagaard does not see a problem with new bids from oil companies in the future, nor does he believe that they dictate Danish climate policy.

”It’s the North Sea Agreement, which is a political settlement with a broad circle of parties behind it. That’s what dictates it, and it’s unchanged,” says the minister.

(Translated using DeepL with additional editing by Kristoffer Grønbæk)

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