Final rejection

by the Norwegian Petroleum Museum

Phillips Petroleum had applied to the Norwegian government on 29 October 1962 for a sole concession covering Norway’s continental shelf. The authorities promised on 17 July 1963 to consider this.

— Final rejection of the application for exclusive rights on the Norwegian continental shelf.

But the basis for this application was steadily eroded. Many companies began seismic surveying, and a total of nine secured production licences from the first licensing round in 1965.

However, Phillips reminded the government at regular intervals that it had never received a proper response to its request. Knut Dæhli, director general at the Ministry of Petroleum and Energy, eventually lost patience with these nudges.

He addressed an official letter with the national coat of arms and ministry logo to Anders Waale, head of the Phillips office in Oslo and a friend of his, which included the following:

In light of the legal and factual developments on the Norwegian continental shelf after Phillips Petroleum Company’s application of 29 October 1962, and in light of the clear change in the company’s strategy of securing oil and gas licences … through ordinary licensing rounds, the Ministry of Petroleum and Energy must regretfully inform you that the above-mentioned application is hereby finally rejected.

The letter was dated September 1986, 24 years after Phillips had tried to acquire sole rights to the continental shelf.[REMOVE]Fotnote: Kindingstad, Torbjørn and Hagemann, Fredrik (ed), Norwegian Oil History, Stavanger, 2002: 251