Kathmandu— Norway will proceed with developing its Arctic oil and gas resources, even as the European Union reviews its policy of banning new drilling projects in the region, according to a senior government official. Energy Minister Terje Aasland announced that exploration in the Barents Sea will continue, citing both Norwegian and broader European interests amid shifting geopolitical dynamics and energy market pressures. The move comes as Europe increasingly relies on Norway for natural gas following Russia’s invasion of Ukraine, and with further tightening of global markets due to conflict in the Middle East.

EU Policy Under Review

The EU currently supports a ban on new Arctic drilling based on environmental concerns, but is now reevaluating that stance. This review is driven by growing energy security anxieties stemming from geopolitical instability and supply disruptions. Norway supplies approximately 30 percent of the natural gas consumed in both the European Union and the United Kingdom.

Norway’s Justification for Drilling

Terje Aasland, Norway's Energy Minister, argued that continued activity in the Barents Sea is beneficial to both Norwegian and European interests given the current global situation. He emphasized that the areas of the Barents Sea open for oil and gas exploration are ice-free, reducing the risk of environmental incidents like oil spills. Aasland stated, “We would develop these areas, and then it will be up to the EU whether they should have a moratorium on buying that gas or oil.”

Industry Support and Export Flexibility

Anders Opedal, CEO of Equinor, Norway’s largest oil company, highlighted the flexibility of Norwegian resources. He indicated that any rejection by the EU would not halt production, as oil and liquefied natural gas (LNG) from the Barents Sea could be shipped to other global markets. “The only thing that will suffer from this is European security,” Opedal said. Total, a French oil company, also signaled its intent to expand operations in Norway, with CEO Patrick Pouyanne announcing plans to appoint a new exploration manager for Norwegian projects.

Geopolitical Factors Driving Demand

The increased demand for alternative energy sources is linked to ongoing conflicts and geopolitical tensions. The war in Ukraine has already established Norway as Europe’s primary natural gas supplier, and the recent conflict involving the United States and Iran is further tightening global energy markets. Patrick Pouyanne described Norway as “the natural energy supplier for Europe,” noting that EU countries are seeking resources closer to home due to disruptions in global trade.

Norway appears committed to continuing Arctic oil and gas development, anticipating ongoing demand from European markets even if the EU maintains its current policy stance. The ONS energy conference is expected to further illuminate Norway’s strategy and potential partnerships.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.