The startup of Norway's $20B Johan Sverdrup field will not be delayed by a political dispute over its source of power, Prime Minister Erna Solberg says.
OSLO, May 28 (Reuters) - The startup of Norway's $20 billion Johan Sverdrup oil field, the country's largest industrial project in decades, will not be delayed by a political dispute over its source of power, Prime Minister Erna Solberg said on Wednesday.
Opposition parties, who hold a majority in parliament, recently agreed to ask all new fields in the Utsira High area of the North Sea, including Sverdrup, to get power from the shore when they start producing rather than generating it on the rigs with natural gas or diesel.
Using electricity from land would be a more environmentally friendly option, but operator Statoil said this could push up costs and delay projects.
However the Labour Party, the single largest party in parliament, is now hinting it may soften its stance and find common ground with Solberg's minority government.
"I expect Johan Sverdrup not to be delayed by political decisions," Solberg told Reuters in an interview.
"The last few days the clear message from the Labour Party has been that they are back on track with what the government has said for a long time, that yes, we'd like to see electrification (of the full area), but we won't manage to do that by the start of Johan Sverdrup," the premier said.
Power from the shore could cut Norway's carbon dioxide emission by 1 million tonnes, because the country generates its electricity from hydro plants, but it would be a technically challenging and costly solution given the distance to land.
View Full Article
Copyright 2016 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you