Equinor has received the authorities’ approval for extending the life of eight installations on the Norwegian Continental Shelf (NCS) during the last three years, the company said on March 14.
Several of these installations were originally scheduled for shutdown already, or in only a few years. Instead, the extensions will give many more years of operation on the NCS.
“Field life extension is an excellent way of managing resources, as it creates high value from established fields, where we cooperate with our suppliers on safe operation and lower emissions every single day. It also creates more activity offshore, in line with our ambition of pursuing our profitable and sustainable development of the NCS,” Arne Sigve Nylund, Equinor’s executive vice president for development and production Norway, said.
The eight life extensions involve Gullfaks A, B and C (2036), Oseberg East (2031), Snorre A and B (2040), Norne (2036) and Åsgard A (2030).
In 2018, Gullfaks produced oil and gas at a value of close to NOK 28 billion and investments of NOK 4.7 billion were made.
Equinor plans to extend the life of more than 20 NCS installations in total. The company is expected to apply for extending the life of all older and relevant installations by 2031.
Equinor has submitted applications for consent to the authorities for further operation of Vigdis, Tordis and Veslefrikk. Applications for life extension of Troll B and Heidrun Subsea are scheduled to be submitted this year.
Norwegian Equinor ASA, Brazilian Enauta Participacoes SA, Compania Espanola de Petroleos S.A.U. and Petroleos de Portugal Petrogal SA, controlled by Galp Energia SGPS SA, are joining the bidders.
The memorandum of understanding (MoU), signed late Oct. 14, will be later signed as a definitive deal after Exxon Mobil studies the blocks of the company, one of the sources told Reuters.
The shale producer expects production from continuing operations to be 1.1 million to 1.12 million barrels of oil equivalent per day.