"After a relative lack of interest in the 1990s, we have seen a resurgence in the appeal of the Barents Sea and we think this is likely to continue," Norwegian deputy oil and energy minister Anita Utseth told AFP.

To date, limited exploratory drilling in the Barents has met with only modest success.

But as the oil price hovers around 70 dollars a barrel, drilling in the Arctic is beginning to look increasingly attractive, despite the cost and complexity.

"The chances of success are small, but if you do strike oil, the returns can be huge," says Oerjan Birkeland, head of Norwegian oil group Statoil's exploration of the Barents Sea.

New technologies and melting ice sheets caused by global warming make it easier to tap into oil and gas fields in the unforgiving conditions of the Barents.

Snoehvit, Goliat and Shtokman are vast fields that could allow Europe and the United States to reduce their dependency on troubled Middle East supplies.

According to the US Geological Survey, the Arctic could contain up to a quarter of the world's undiscovered oil and gas reserves.

Off the coast of Hammerfest, in the far north of Norway, Statoil's Snoehvit gas field is nearing completion and is due to begin production at the end of 2007.

In the same region, Italian energy firm Eni's appropriately named Goliat field is estimated to contain around 250 million barrels of oil equivalents.

In the Russian camp, Gazprom's Shtokman venture could supply the European Union's oil needs for seven years. Statoil, Norsk Hydro, ConocoPhillips, ChevronTexaco and Total are all keen to cooperate for a share in the project.

Even larger fields are in the offing, such as Fedinsky, in disputed waters between Norway and Russia.

Officially the two countries are keen to cooperate, but diplomats talk privately of competition, even a new cold war, for control of these resources.

However, some experts believe the oil companies might be 30 to 40 million years late. According to the Sintef research institute oil might have seeped away due to seismic movements which cracked the seabed.

With abundant cod stocks in the Barents Sea that guarantee Europe's seafood supply, fishermen and ecologists also fear for the region's fragile ecosystem.

"It's a harsh region, plunged into complete darkness in winter, characterised by extreme cold, dreadful weather conditions, huge chunks of floating ice and vast distances," warns Samantha Smith of the World Wide Fund for Nature.

This increases the need for heavy equipment and the risks of an oil spill in an area where harsh conditions make clean-ups virtually impossible, Smith adds.

Related Links