JAKARTA - The Norwegian government announced new offshore exploration areas to further develop the country's oil sector due to high energy prices following the closure of the Strait of Hormuz amid rising US-Israeli and Iranian tensions.
Norwegian Prime Minister Jonas Gahr Store said his country was offering 70 new blocks for exploration under the annual licensing round of the Allocated in Defined Areas (APA), according to a report by television station NRK.
He described the move as part of efforts to further develop the country's petroleum sector.
As reported by ANTARA from Anadolu, Tuesday, May 5, the blocks are spread over three areas: 38 in the Barents Sea, 10 in the Norwegian Sea, and 22 in the North Sea.
The APA scheme is a fixed annual cycle that allows companies to apply for exploration rights in areas that have been opened and are considered to have been well explored by the authorities.
Some of the newly proposed blocks are located closer to the coast than in previous rounds, marking an unprecedented expansion of exploration activity in the nearshore area under the APA system.
The announcement comes amid rising energy prices on global markets, with Norway remaining the main supplier of oil and gas to Europe.
Regional tensions have escalated since the US and Israel launched an attack on Iran on February 28, triggering retaliation from Tehran against Israel and US allies in the Gulf, along with the closure of the Strait of Hormuz.
The ceasefire came into effect on April 8 through Pakistani mediation, but talks in Islamabad failed to produce an agreement. The ceasefire was then extended by US President Donald Trump indefinitely.
Oil prices have jumped sharply this year due to Middle East conflicts and the effective closure of the Strait of Hormuz, which disrupted the flow of crude oil, fuel and LNG, forcing traders to constantly take into account supply and delivery risks.
The Strait of Hormuz connects the Gulf with the Arabian Sea and is an important corridor for energy exports from major producers including Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, Qatar, and Iran.
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