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Equinor Partners Investing $937,5M to Develop Six

Norwegian oil firm Equinor and Halten East partners Vår Energi, Spirit Energy, and Petoro have decided to invest around NOK 9 billion (around $937,5 million) to develop the area near the Åsgard field in the Norwegian Sea.

The area consists of six gas and condensate discoveries and options on another three prospects. Today, the partnership submits 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 executive vice president, Projects, Drilling & Procurement.

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

100 million barrels of oil equivalent

Recoverable reserves in Halten East are estimated at almost 16 million Sm3 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, vice president, 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 Equinor more than 90 percent of the Halten East investments go to suppliers resident in Norway with contracts at a combined value of almost NOK 7 billion (~$728,95 million) set to be awarded.

Technip FMC will be responsible for the installation of pipelines and subsea structures – value NOK 1.3-1.5 billion; Aker Solutions will deliver the subsea production system contract – value NOK 1.3-1.5 billion; and Aker Solutions has a Letter of intent for an umbilical – value NOK 300-400 million.

Also, contracts have been awarded for drilling, drilling services, specialist services and modifications to the Åsgard B platform module at an estimated value of NOK 3.6 billion ($374,8 million). The contracts are subject to government approval of the plan for development and operation.

Partners are Equinor Energy AS (57.70% – operator), Petoro AS (5.90%), Vår Energi AS (24.60%) and Spirit Energy AS (11,80 %).

Read More: Equinor Partners Investing $937,5M to Develop Six

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