Equinor Submits Plan For Halten East Subsea Developments

Equinor Submits Plan For Halten East Subsea Developments
Equinor and Halten East partners have decided to invest about $940M in the development of the area neighboring the Åsgard field in the Norwegian Sea.

Equinor and Halten East partners Vår Energi, Spirit Energy, and Petoro have decided to invest about $940 million in the development of the area neighboring the Åsgard field in the Norwegian Sea.

The area consists of six gas and condensate discoveries – Gamma, Harepus, Flyndretind, Nona, Sigrid, and Natalia – as well as an option for another three prospects. The partnership submitted the plan for development and operation to the Ministry of Petroleum and Energy.

“Gas is an important energy carrier for Europe. Halten East utilizes the existing gas infrastructure on the Norwegian continental shelf (NCS) and will add important volumes that will generate substantial value. The project is a good example of how Equinor works with partners and government authorities across production licenses to find smart solutions for optimal resource exploitation from the NCS,” says Geir Tungesvik, Equinor’s EVP of Projects, Drilling, and Procurement.

Halten East is a collective name for several small-size discoveries and prospects. Finding economically viable development alternatives for each project was difficult. In 2020 the licensees in the four licenses, therefore, agreed to develop the area as a unit.

Recoverable reserves in Halten East are estimated at almost 565 million cubic feet of oil equivalent, or around 100 million barrels of oil equivalent, 60 percent of which is gas piped via Kårstø to Europe.

“Halten East is a subsea development consisting of five subsea templates that will be tied back to the existing infrastructure on the Åsgard field, ensuring good resource exploitation and high-value creation, low development costs, and low CO2 emissions,” says Randi Elisabet Hugdahl, VP of Åsgard operations.

The project is planned to be executed in two phases. In the first phase of the development, six wells will be drilled in the period 2024-2025, whereas phase two is planned to be developed in 2029. Production start from the two first wells is scheduled for 2025. Subsequently, the wells will be put on stream as they are completed.

According to a spin-off study by Bodø Science Park, the national employment effects in the development phase of Halten East are estimated at slightly more than 3,000 person-years of employment per year over five years in the period 2022-2029. Equinor added that more than 90 percent of the Halten East investments would go to suppliers from Norway and that contracts at a combined value of almost $735.5 million will be awarded.

The development contracts

Aker Solutions was awarded a sizeable contract from Equinor to deliver the subsea production system for the Halten East development offshore Norway. A sizeable contract as being between $52 to $156.7 million.

The company will deliver a complete subsea production system including seven standardized vertical subsea trees, five dual-slot satellite structures with manifolds, a metering station, as well as control systems, wellheads, and tie-in equipment. Work will start immediately with final deliveries scheduled for the third quarter of 2024.

“This contract once again demonstrates the value of our standardized product offering and the benefits of the portfolio approach in our execution. We look forward to supporting Equinor and its partners in creating value on this important tie-back project,” said Maria Peralta, EVP and head of Aker Solutions' subsea business.

Also, Aker Solutions was awarded a separate letter of intent for the delivery of about 55 miles of static subsea umbilicals for the Halten East development. The company expects to book an order intake between $31 and $42 million related to the umbilicals contract.

Another deal was an EPCI deal awarded to TechnipFMC by Equinor for subsea tiebacks for Halten East. The contract covers the manufacture and installation of flowlines and the installation of umbilicals and subsea structures.

“We are proud that we can help our longstanding partner Equinor and its consortium partners transform the economics of this project by optimizing design, engineering, manufacturing, and installation,” Jonathan Landes, President, Subsea at TechnipFMC, stated.

TechnipFMC did not provide the financial details of the deal except stating that it was a ‘significant’ deal. Such a deal is considered by TechnipFMC to be between $75 and $250 million.

In addition, contracts have been awarded for drilling, drilling services, specialist services, and modifications to the Åsgard B platform module at an estimated value of $357.7 million.

To contact the author, email bojan.lepic@rigzone.com


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