The Ministry of Energy proposes amendments to the Storage Regulations

On 6 March 2026, the Ministry of Energy ("the Ministry") issued for public consultation a proposal for amendments to Regulations No. 1517 of 5 December 2014 on the Exploitation of Subsea Reservoirs on the Continental Shelf for the Storage of CO₂ and on the Transport of CO₂ on the Continental Shelf ("the Storage Regulations").

The proposed amendment follows a period of increasing commercial interest in CO₂ storage on the Norwegian continental shelf. Since 2021 thirteen exploration permits have been awarded, of which twelve still remain active.

The consultation paper proposes a number of major and minor changes to the Regulations, and specifically requests input on several topics that will be important for both existing and potential future licensees of exploitation licences.

Key points in the proposed amendments

Merging of the licensing regime: One licence from exploration to the operational phase

A key change proposal is that the current division between exploration licences and exploitation licences is proposed to be removed. Instead, a single exploitation licence will be awarded that covers the entire process from the exploration phase, through development and into the operational phase. It is therefore proposed that Chapter 3 on exploration licences be repealed, and relevant provisions be included and/or amended in Chapter 4.

The Ministry emphasises that the change does not entail any substantive change in the award policy, but makes the licence regime more similar to what the actors know from the petroleum activities. It is proposed that, when awarding an exploitation licence, a work programme with milestones be established where the licensee decides whether to proceed to the next phase of the work programme or to surrender the licence. The duration of the licences will not be limited to the duration of the work programme, but is also intended to cover a possible development and operation phase. The new exploitation licences will thus cover a maturation phase in which the work programme is to be implemented, as well as a development phase and an operational phase that will be carried out if the licensee makes an investment decision and applies for approval of development plans approved by the Ministry.

To ensure equal treatment, the Ministry envisages that existing exploration licences will be converted to exploitation licences shortly after any amendments enter into force.

The Ministry stresses that the proposal maintains the current licensing policy. In our assessment, the proposal will nevertheless contribute to removing the element of uncertainty with regard to the transition to an exploitation licence in the project development. This is useful both for licensees and for potential storage customers in the development of a market.

Freedom to choose the organisational form of the storage activity

Currently, the Regulations require that activities in licences pursuant to the Regulations that are awarded to several legal persons jointly must be carried out for the joint account and risk of the partners. In practice, this means that the Ministry has stipulated that the company must be organised as a general partnership (ANS). The Ministry now proposes that the licensees themselves may choose the company form for the collaboration – as is normal in other commercial activities.

Another alternative that is again being considered is the introduction of a partnership model (Nw. interessentskapsmodell), modelled on the petroleum activities, with an associated special exemption from the Companies Act. The Ministry requests for the stakeholders' input on the proposal as to whether there should be a free choice of company form for participation in licences under the Storage Regulations, or whether it should be the case that the activities are organised in a partnership model instead. We understand that the Ministry is considering an either-or solution, i.e. either the company form model allowing free choice of company form or the partnership model. We assume that the partnership model, if pursued, may need to be specifically justified, as CO₂ storage does not necessarily have the same characteristics as extraction of petroleum or possibly seabed minerals.

Partnership agreements

Regardless of the form of organisation, the licensees are required to enter into standardised cooperation and accounting agreements drawn up by the Ministry. The rationale is the State's experience with standard cooperation agreements on the continental shelf, and particular emphasis is placed on the dissemination of information and efficient decision-making mechanisms that ensure good exploitation of resources.

It is further proposed to clarify that if a licence is awarded to only one company, the Ministry may stipulate as a condition that agreements between the owners of the licensee company are also in accordance with the agreements stipulated by the Ministry and that they shall promote good resource management. The Ministry further elaborates in the consultation document that it is in particular decision-making mechanisms agreed in shareholder agreements or similar owners' agreements that do not promote good resource management that will be avoided by this clarification. Furthermore, it also seems to be confirmed that allocation to a single licensee alone will be acceptable within the scope of the Storage Regulations.

award criteria

The Ministry proposes amendments to section 4-1, third paragraph, to clarify the criteria that will be emphasised in connection with the award of an exploitation licence. The proposed changes is mainly related to the organisation of the business. Under the current system, all of the licensees of the licence must meet the competence requirements, i.e. all partners in the company that has been awarded the licence. In particular, the Ministry asks for input on whether there is reason to adjust this requirement for CO₂ storage and transport. If there are appropriate solutions that allow for the inclusion of financial investors, for example, while neither geological competence, quality nor safety is put into play, this will, in our opinion, increase the attractiveness among international investors and provide the storage companies new access to capital, which in turn can contribute to more projects being realised.

changes related to national security, sharing of exploitation permits and developments of transport infrastructure

• It is proposed that it be possible to refuse the granting of a licence and the exercise of activities on the basis of national security considerations, in sections 4-1, fourth paragraph and 6-1, sixth paragraph. An addition is also proposed to section 11-21, third paragraph, stating that the Ministry may revoke and amend an existing licence based on the same consideration.
  • A new section 4-16 is proposed on the division of exploitation licences, modelled on section 3-10 of the Petroleum Act. In practice, the division of exploitation licences will be carried out by dividing parts of the area for the exploitation licence and issuing a new exploitation licence for the new subdivided area. Division can take place both horizontally and vertically, and – unlike the petroleum regulations – there is no requirement for "special reasons" for horizontal sharing.
  • A new provision is also proposed that gives the Ministry the right to appoint an actor to assess the development of CO₂ transport infrastructure with a view to comprehensive solutions. Gassco is intended to play this role. Licensees and others planning transport-related developments are required to inform the designated player at an early stage, and to provide the necessary information within set deadlines. The costs of such assessments shall be covered by the licensees. The proposed amendments to the Regulations are intended to ensure that the Ministry has sufficient knowledge of infrastructure projects at an early stage, and that the studies that the authorities deem necessary are carried out. It is worth noting that even though ship-based solutions for the transport of CO₂ are outside the scope of the Regulations, ship transport is still considered as part of the player's assessment of the relevant infrastructure solution.

Other changes

Other proposals include:

• It is proposed that the provision on area fees in section 11-5 be repealed, as it has not been used since the regulations entered into force.
• The decision-making authority in Chapter 2 on exploration licences will be transferred from the Ministry of Energy to the Norwegian Offshore Directorate.
• New definitions of "survey" and "transport network" are included in section 1-6, and it is specified that natural persons may be licensees and/or operators.
• A new third and fourth paragraphs are proposed in section 11-1 modelled on section 10-1, third and fourth paragraphs, of the Petroleum Act, which stipulates a power to order a cessation where special reasons arise.
• An amount limit of NOK 20 million is introduced for the audit obligation in licences with state participation in section 11-15.
• A new section 11-16a is proposed on pay conditions on ships providing services to CO₂ storage activities. However, it is emphasised that this does not apply to the actual transport of CO₂ by ship. We therefore assume that this is particularly relevant for projects that plan to use vessels as part of the actual storage activities.
• It is proposed that a new provision on the naming of storage sites, etc., be included as a new section 11-17a.
• An exemption from the impact assessment is proposed for pipelines with specific dimensions.
• Three new provisions are proposed on reporting to the Norwegian Offshore Directorate (Sections 11-7a, 11-7b and 11-7c), which, unlike the petroleum regulations, will apply to all active licences regardless of whether injection has been initiated.
• It is proposed that the duration of the duty of confidentiality for interpreted data be shortened from 20 to 5 years, with a transitional rule for existing datasets that means that the duty of confidentiality is maintained for up to 5 years after entry into force, but no longer than 31 December 2030.

What happens next?

The Ministry has initiated an assessment of whether a separate CO₂ Storage Act should be prepared to replace Act No. 12 of 21 June 1963 on scientific exploration and exploration for and exploitation of subsea natural resources other than petroleum deposits and mineral deposits (the 1963 Act) as the legal basis for the Storage Regulations. The rationale is that the 1963 Act is a framework law that does not provide a good basis for detailed regulation of future CO₂ storage activities on the Norwegian continental shelf. As part of this assessment, the Ministry will also consider introducing the right to pledge the exploitation licence as security, which the industry players have highlighted as crucial for securing financing on commercially acceptable terms. An ability to pledge the licence requires statutory authority.

The European Commission has announced a review of the CCS regulations at EU level, which is expected to be completed during the third quarter of 2026. The Ministry is awaiting this review before any proposals are submitted for substantive changes to, among other things, the rules for third-party access.

The consultation deadline is set for 5 May 2026, and the consultation document can be found here. We are following developments and you are welcome to contact us if you have any questions about the proposed changes or would like to discuss if your company is considering submitting a consultation response.