Equinor Decides on $760MM+ Project

Equinor Decides on $760MM+ Project
Equinor (NYSE: EQNR) has announced that it and its partners Petoro, Var Energi, and Total E&P Norge have decided to develop the Lavrans and Kristin Q discoveries.

Equinor (NYSE: EQNR) has announced that it and its partners Petoro, Vår Energi, and Total E&P Norge have decided to develop the Lavrans and Kristin Q discoveries.

The development constitutes phase 1 of the Kristin South project, which is said to have capital expenditures of around $760 million (NOK 6.5 billion). Equinor noted that the plan for development and operation (PDO) would be submitted to the minister of petroleum and energy on June 30.

Production from Lavrans and Kristin Q will be tied into the Kristin platform. A subsea template will be installed at Lavrans and an already installed subsea template will be reused at Kristin Q. A total of five wells are planned to be drilled, four at Lavrans and one at Kristin Q. The expected production in phase 1 of the Kristin South project is estimated to come in at a total of 58.2 million barrels of oil equivalent, according to Equinor.

“The decision to develop the Kristin South area will generate substantial value for society and the owners,” Equinor’s executive vice president for projects, drilling, and procurement, Arne Sigve Nylund, said in a company statement.

“We exploit the resources and the existing infrastructure in a favorable way, while contributing to further development of the Norwegian Sea. We have also awarded contracts worth about [$257 million] NOK 2.2 billion. These assignments will help maintain jobs in Norway,” Nylund added.

Equinor’s executive vice president for exploration and production Norway, Kjetil Hove, said, “our ambition is to transform the Norwegian continental shelf to create great value while helping Norway achieve the Paris goals”. 

“Extending the productive life by utilizing the infrastructure we have on the NCS for satellite developments is very important and ensures good profitability and low CO2 emissions,” Hove added.

Equinor Energy AS holds a 54.82 percent operated interest in the project, with Petoro AS holding a 22.52 percent stake, Vår Energi AS holding 16.66 percent interest, and TotalEnergies EP Norge AS holding the remaining six percent share.

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



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