$2B North Sea Field Gets Green Light

$2B North Sea Field Gets Green Light
Equinor (NYSE: EQNR) has decided to develop the Breidablikk field in the North Sea.

Equinor (NYSE: EQNR) and its partners Petoro, Var Energi and ConocoPhillips Skandinavia have decided to develop the Breidablikk field in the North Sea, Equinor revealed on Monday.

The partnership will submit the plan for development and operation to the Minister of Petroleum and Energy today, Equinor noted. The expected production from the field is about 200 million barrels and investments are expected to total around $1.95B (NOK 18.6 billion).

A subsea development concept, with 23 oil producing wells from four subsea templates controlled from the Grane platform, has been chosen for Breidablikk, which is expected to achieve first oil in 2024. The contract for subsea production facilities has been awarded to Aker Solutions. Wood, the maintenance and modification supplier for Grane, has performed studies for the Breidablikk project, and an option for engineering, procurement, construction and installation will now be exercised for the company. Earlier this year TechnipFMC won a contract for pipelaying in the Breidablikk project with options for subsea installation. 

“The Breidablikk field is one of the largest undeveloped oil discoveries on the Norwegian continental shelf,” Geir Tungesvik, Equinor’s acting executive vice president for technology, projects and drilling, said in a company statement.

“Field development will create substantial value for the Norwegian society and the owners. We are also pleased to award two key contracts today at a total value of [$346 million] NOK 3.3 billion, including options,” he added.

“The contracts will contribute to important activity for the supply industry and secure jobs for many years,” he continued.

Arne Sigve Nylund, Equinor’s executive vice president for Norway development and production, said, “I am pleased that we together with our partners have matured the Breidablikk field to development”.

“Breidablikk shows how the industry’s combined competencies create high value and returns from a world-class infrastructure on the NCS,” Nylund added.

Kjetel Digre, the chief executive officer of Aker Solutions, said, “the award demonstrates our competitive position in the subsea market and will lead to more activity at many of our facilities in Norway and internationally, creating work for hundreds of employees across Aker Solutions”.

Dave Stewart, the CEO of Wood’s asset solutions business in Europe, Africa, Asia and Australia, said, “we are pleased to support the development of the Breidablikk tie-in project, which aligns with our ambition to support our clients with realizing the full potential of their project portfolios”.

Breidablikk, which is located northeast of the Grane field in around 425 feet of water, has three discovery wells. The first one was found in 1992, and two new ones followed in 2013 and 2014. Hydrocarbons on the Breidablikk field are said to extend over an area of approximately 14 square miles.

To contact the author, email andreas.exarheas@rigzone.com


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