Equinor Submits $1.1B Plan For Further Oseberg Development

Equinor Submits $1.1B Plan For Further Oseberg Development
Equinor has submitted a plan for development and operation for the Oseberg field in the North Sea.

Norwegian oil and gas firm Equinor has submitted a plan for development and operation (PDO) for the Oseberg field in the North Sea.

The development plan, which entails an investment of over $1.1 billion, was submitted to the minister of petroleum and energy Marte Mjøs Persen.

Equinor said that it would reduce CO2 emissions from the Oseberg Field Centre and the Oseberg South platform while increasing Oseberg gas production.

Oseberg will be developed from primarily being an oil field to becoming a substantial gas producer with large remaining gas resources.

Two new compressors will be installed to boost recoverable gas volumes and the Oseberg Field Centre and Oseberg South platform will be partially electrified.

“It is important to Equinor and the Oseberg partners to produce oil and gas with the lowest possible emission level. This investment decision allows us to increase production of Oseberg gas considerably in the future while reducing CO2 emissions by an estimated 320,000 tons per year,” Geir Tungesvik, Equinor’s SVP for project development, said.

“During the project planning, we have received good support from and cooperated closely with our partners. We are now entering the execution phase together with highly qualified suppliers,” he added.

Equinor added that plans call for the start-up of the new facility in 2026. The work to be carried out on the platforms is extensive as three big modules totaling 3,400 tons will be installed. Rebuilding of the Oseberg Field Centre will take four years while work on Oseberg South will be done in one year.

According to the company, the work will be completed while the plants are in full operation and will require close and good cooperation between all the different players.

Oseberg is the third-largest oil producer ever on the NCS. When it came on stream, it was expected to produce around one billion barrels of oil. Equinor now expects the field to produce a total of around 3.2 billion barrels of oil. Oil production is in the tail phase, but 60 percent of the gas resources are still in the ground.

When it comes to gas, Oseberg is also one of the major fields, only Troll and Snøhvit have more remaining gas resources on the NCS. Equinor expects the field to produce more than 3.5 trillion cubic feet of gas by 2040.

For the year 2020, emissions there totaled around one million tons of CO2. Since 2010, emissions at Oseberg have been reduced by around 15 percent, and there is an ambition of further reducing emissions by 50-70 percent by 2030.

In March 2021, Equinor received consent to construct, own, and operate necessary electrical facilities to provide the Oseberg Field Centre and the Oseberg South platform with power from shore. Oseberg will have a total power demand of up to 105 MW. The project will also prepare for any full electrification of the installations in the future.

It is estimated that more than 70 percent of investments in the Oseberg upgrades will go to suppliers in Norway.


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