BlueNord, a Norwegian energy firm formerly known as Noreco, has decided to opt out of a mini oil and gas licensing round set in the Danish sector of the North Sea. This development follows BlueNord's initial expression of interest in the licensing round by submitting a license application related to the Elly-Luke gas discovery.

The Danish Energy Agency initiated the mini-round on July 6, 2023, in response to BlueNord's unsolicited application. However, BlueNord has subsequently reconsidered and chosen not to proceed with its application for a new oil and gas permit that encompasses the Elly and Luke discoveries. Although the deadline for all interested oil and gas companies to submit their applications for the permit is October 15, 2023, BlueNord formally withdrew from the process on September 25, 2023.

BlueNord cited various factors for its withdrawal, including identifying potential technical challenges, evaluating commercial considerations, and conducting an internal assessment of the Elly-Luke project in comparison to other ventures.

The Elly-Luke area is situated in blocks 5504/6 and 5504/10 and is primarily recognized for its natural gas reserves, with a smaller proportion of condensate. The Danish Energy Agency has estimated the gas volume in the discovery to be approximately 5.2 billion cubic meters.

Denmark is actively working to reduce greenhouse gas emissions through carbon capture and storage (CCS) initiatives. The country is planning substantial investments of nearly DKK 27 billion (around $3.96 billion) in the next round of CCS tenders to advance its decarbonization efforts and promote renewable energy, solidifying its position as a global leader in sustainable energy practices.