Norway completes seismic scan in pristine Arctic

By Wojciech Moskwa

OSLO (Reuters) - Norwegian energy authorities have completed a seismic survey of Arctic waters near the scenic Lofoten islands, which environmental groups say should be permanently out of bounds to oil and gas drilling.

The Norwegian Petroleum Directorate (NPD) said on Monday it finished a three-dimensional seismic survey of the Troms II area north of Lofoten despite a late start due to logistical problems.

The NPD in June scaled down the survey of the undeveloped offshore seas, which industry wants opened for oil and gas exploration to sustain Norway's petroleum export boom.

"We were able to complete the entire 700 square kilometer survey because weather and sea conditions were favorable for seismic data gathering," NPD spokeswoman Eldbjorg Vaage said.

The survey, which produces a seismic picture of the seabed that can be interpreted by geologists, is needed to decide whether to allow oil and gas activities in the pristine region.

Oil companies, whose North Sea resources are running out, back the plan while environmental groups as well as two parties in the three-party centre-left government coalition oppose it.

A final decision on whether to open up the areas for exploration is due after next year's general election.

Norway's oil production peaked at more than 3 million barrels per day in 2000 and has declined to about 2 million this year as output from maturing North Sea oilfields continues to decline. Production of natural gas, however, is on the rise.

"We will not publish this data, it will be used in connection with a revision of the management plans for the Barents Sea and the areas near the Lofoten islands," Vaage said.

The controversial scans were three weeks shorter than planned because of a shipyard delay of a seismic vessel owned by Bergen Oilfield Services (BOS) and an engine room-fire on a Petroleum Geo-Services seismic vessel.

Seismic vessels use sound waves to map the ocean floor and indicate which areas may have deposits of oil or gas, which can later be confirmed by more expensive and invasive drilling.

The NPD said lower resolution 2-D scans would continue until September 15, in line with earlier plans.

The area off the picturesque Lofoten islands and just north of it, Nordland VII and Troms II, has been increasingly interesting for oil and gas companies with the development of new deepwater and seabed exploration technology, soaring energy prices and limited availability of acreage worldwide.

(Editing by Anthony Barker)