August 14, 2022

Norwegian Energy Corporation plans US$1.7 billion in oil and gas development

Oslo, June 30 (Reuters) Equinor (EQNR.OL) and Aker BP (AKERBP.OL) formulated a plan to develop four oil and gas discoveries, with a total price of 14.5 billion Norwegian kroner (1.69 billion US dollars), as a Norwegian One part strives to maximize the output of existing oil fields.

The Nordic country, which began drilling for oil and gas 50 years ago, believes that it has only exploited about half of its available resources, and hopes that nearby development projects will help ensure production in the coming years.
In such a development project, Equinor (EQNR.OL), Petoro, Eni (ENI.MI) and TotalEnergies (TTEF.PA) will invest 6.5 billion crowns in two oil and gas near the Kristin gas and condensate fields in the Norwegian Sea Discovering. These companies said.

This plan constitutes the first phase of the Kristin South project, which aims to develop the Lavrans and Kristin Q discoveries, and has been submitted to the Ministry of Petroleum and Energy for approval.
During the life of the field, the expected total oil and natural gas production from these two development projects is estimated at 58.2 million barrels of oil equivalent.

“The decision to develop the Kristin South area will create tremendous value for society and the owners,” said Arne Sigve Nylund, Equinor’s head of projects, drilling and acquisitions.
Production of the first three wells (two Lavrans wells and Kristin Q well) is scheduled to start in 2024. The last two wells of Lavrans are scheduled to start production in 2025, and other discoveries may be included in the future.
Equinor operates the Kristin oil field and owns 55.3% of the shares, while Petoro owns 19.6% of the shares, Eni’s Norwegian subsidiary (ENI.MI) Vaar Energi owns 19.1% of the shares, and France’s Total Energies (TTEF. PA) owns 6% of the shares. Shares.

AKER BP project
Aker BP and its partners ConocoPhillips (COP.N) and Lundin Energy (LUNE.ST) will each invest 8 billion Norwegian kroner (935 million US dollars) to develop the Kobra East oil and gas discovery and the Gekko North Sea area in Alvheim .

The project aims to produce about 40 million barrels of oil equivalent at an equilibrium price below US$30 per barrel. Production is expected to start in 2024, Aker BP told the Norwegian Ministry of Energy.
“This project is a good example of how the temporary changes in the Norwegian oil tax system approved in June last year can stimulate activity on the Norwegian platform,” said Karl Johnny Hersvik, CEO of Aker BP, in a statement.
The Norwegian Parliament approved tax incentives last year to support investment in new offshore development projects when its main oil and gas industry was hit by falling oil prices during the COVID19 pandemic.

Aker BP has a 65% interest in the license containing these discoveries, while ConocoPhillips owns 20% and Lundin Energy 15%.


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