Norwegian energy company Statoil said it expressed reserved exploration interests in a Barents Sea area covered in a bilateral agreement with Russia.

Statoil delivered its application to the Norwegian Ministry of Petroleum and Energy for a licensing round set for completion by mid-summer 2016. The round represents the first time the government is opening up new acreage on the Norwegian continental shelf since 1994.

Acreage up for auction includes areas near the southeast Barents Sea, clarified in 2011 as Norwegian territory following a border agreement with Russia.

The talks between Russia and Norway took four decades to complete and affect an offshore area of 68,000 square miles. The 2011 agreement lifted a moratorium on prospecting the natural gas and oil deposits on the arctic continental shelf.

Jez Averty, a senior vice president for exploration at Statoil, said the company has been a "guarantor" for exploration and production in the Barents Sea since the 1980s. If the auction is successful, the company could start drilling into the new acreage within two years.

"Acreage in the 23rd round has significant volume potential, but never-the-less there is a debate where some say that these resources will not be commercial," he said in a statement. "We believe otherwise and our application is proof enough of that."

The arctic waters of the Barents Sea hold significant oil and gas reserves, but exploiting those reserves comes with significant risk. While Norway has one of the most advanced offshore drilling programs in the world, the International Energy Agency said concerns run the gamut from ecological to economic risks.