Equinor has made an oil discovery estimated to hold up to 62 million barrels of crude off the coast of Norway, the energy major said on Nov. 1.
The discovery, just north of the Tyrihans Field and west of the Kristin development in the Norwegian Sea, was the state-controlled firm's sixth find in domestic waters this year, it said.
Equinor seeks to map out resources close to oil and gas fields that are already in operation, thus speeding up development time and maximizing the value of its investments.
“Future value creation will largely come from increased recovery from existing fields, and connection of new discoveries close to existing infrastructure,” Equinor said in a statement.
“Such near-field discoveries are profitable, robust against fluctuations in oil [and] gas prices, they have a short payback period and low emissions,” the company added.
As the pressure mounts on oil companies to shift to low-carbon energy, Equinor has said it will also invest in renewable power. Developing any new fossil fuel, however, runs counter to the goals of U.N. climate talks taking place over the coming two weeks in Glasgow, Scotland. The International Energy Agency (IEA) has said the world needs to stop investment in new oil and gas by next year.
Preliminary analysis of the well, drilled to 3,883 m below sea level and dubbed ‘Egyptian Vulture’ by Equinor and its partners, indicated the discovery contained a light-oil quality, well-suited to refiners.
It contained between 3 million and 10 million cubic m of recoverable oil, corresponding to between 19 million and 62 million barrels, it added.
“The discovery will be evaluated for further appraisal and assessed for tie back to existing fields in the area,” the company said.
Partners in the license were Longboat Energy, with a 15% stake, and Poland’s PGNiG, which holds 30%. Operator Equinor holds the remaining 55%.
Recommended Reading
Enverus: 1Q Upstream Deals Hit $51B, but Consolidation is Slowing
2024-04-23 - Oil and gas dealmaking continued at a high clip in the first quarter, especially in the Permian Basin. But a thinning list of potential takeout targets, and an invigorated Federal Trade Commission, are chilling the red-hot M&A market.
Mighty Midland Still Beckons Dealmakers
2024-04-05 - The Midland Basin is the center of U.S. oil drilling activity. But only those with the biggest balance sheets can afford to buy in the basin's core, following a historic consolidation trend.
EIA: Permian, Bakken Associated Gas Growth Pressures NatGas Producers
2024-04-18 - Near-record associated gas volumes from U.S. oil basins continue to put pressure on dry gas producers, which are curtailing output and cutting rigs.
CEO Darren Woods: What’s Driving Permian M&A for Exxon, Other E&Ps
2024-03-18 - Since acquiring XTO for $36 billion in 2010, Exxon Mobil has gotten better at drilling unconventional shale plays. But it needed Pioneer’s high-quality acreage to keep running in the Permian Basin, CEO Darren Woods said at CERAWeek by S&P Global.
Mesa III Reloads in Haynesville with Mineral, Royalty Acquisition
2024-04-03 - After Mesa II sold its Haynesville Shale portfolio to Franco-Nevada for $125 million late last year, Mesa Royalties III is jumping back into Louisiana and East Texas, as well as the Permian Basin.