Norway protects Arctic oil areas

Norway says it can balance the environment and oil exploration

Norway has approved increased oil exploration in its Arctic waters but will limit drilling in some areas until 2010 to protect the environment.

Under the long-awaited plan, a 50km (31-mile) zone near Norway's coast, which includes the Lofoten islands, will be off-limits.

The area in the Barents Sea is seen as being important for the environment and has large supplies of fish.

Environmental groups criticised the move as giving too little protection.

Develop in parallel

According to Samantha Smith, head of the World Wildlife Fund, Norway should have declared a larger zone as off limits to oil companies.

"A groundbreaking plan would have been permanent protection," she said, adding that 2010 "may be a long time in politics but it's not long for nature".

Baard Lahn, leader of Norway's Nature and Youth environmental group, said that: "It can never be responsible environmental policy to allow drilling in vulnerable ocean areas."

Norway's Prime Minister Jens Stoltenberg hailed the agreement as a breakthrough after fighting hard to reach an agreement with junior government coalition members.

"Fish, the environment, oil and gas can be developed in parallel, taking account of different interests," he said.

As well as the protection zone, Norway's government announced the granting of 13 new oil and gas licences for the Norwegian Sea and the Barents Sea to 17 companies.

While it is difficult to estimate the total amount of oil and gas off Norway's coast, the Norwegian Petroleum Directorate reckons that the Arctic waters may hold a third of the country's undiscovered reserves.

Norway, the world's third-biggest oil producer, has been looking for new oil and gas supplies to maintain output and benefit from high oil prices.