Act No. 72 on petroleum activities [The Petroleum Act].

The present Act establishes the basic legal framework for petroleum activities, including sound resource management, and regulates the licensing system entitling companies to engage in petroleum activities. The Act consists of the following Chapters: 1. Introductory provisions; 2. Exploration license; 3. Extraction license etc.; 4. Extraction of petroleum etc.; 5. Closing of petroleum activities; 6. Registration and pledging; 7. Liability for pollution damages; 8. Special provisions on liability for damages to Norwegian fishermen; 9. Special safety requirements; 10. General provisions; 11. Administrative provisions for the state's economic engagement; 12. Entry into force and amendments.
The Act establishes that the Norwegian state has the proprietary right to subsea petroleum deposits on the Norwegian continental shelf, and holds an exclusive resource management right. A principle is established that petroleum resources shall be managed with a long term view in order to benefit all of Norwegian society. Non-state entities can only engage in petroleum activities holding the authorizations, permits and approvals required by this Act.
Sections 2-1 to 3-15 regulate the exploration and extraction licensing system in detail. Exploration licenses last 3 years, whereas extraction licenses last 10 years, unless otherwise is established. Before an area is opened for extraction, an assessment shall be made taking into account the various interests converging in that specific area. This assessment shall consider the industrial and environmental impacts of petroleum activities and the possible risk of pollution, as well as the economic and social impacts. As regards the extraction process, it shall take place in such a way that as much of the petroleum as possible existing in each deposit, or in several deposits together, is produced.
Provisions on liability establish a strict liability system for pollution damages caused by the right holder. Specific rules are laid down on how to hold the right holder responsible, as well as on compensation for economic loss affecting Norwegian fishermen. In this regard, the right holder shall be liable regardless of his intent for financial loss resulting from pollution and waste originating from petroleum activities.
The Norwegian State shall engage in petroleum activities pursuant to this Act by reserving a fixed share of the authorizations granted under this Act, and through joint-stock companies established by cooperation agreements in accordance with authorizations. The Ministry of Petroleum and Energy shall supervise this Act, and may issue orders for its implementation.