Page 18 - EurOil Week 40

EurOil POLICY EurOil

Six Norwegian fields

offline amid strike

NORWAY SIX Norwegian oil and gas fields were closed on barrels of oil equivalent per day (boepd),
October 5 because of escalated strike action by a accounting for around 8% of national output.
The fields produce a labour union. Norway’s Industri Energi and Safe unions,
combined 330,000 Some 43 workers went on strike at the which represent 85% of offshore workers, also
barrels of oil equivalent Equinor-operated Johan Sverdrup oilfield on threatened industrial action but reached a set-
per day. September 30 after wage negotiations between tlement deal with NOGA. Industri Energi, Safe
union Lederne and the Norwegian Oil and Gas and Lederne had planned to pull a total of 324
Association (NOGA), which represents employ- workers from their shifts on September 30. There
ers, failed to make headway. Production at Sver- are 7,300 workers stationed on Norway’s offshore
drup, which averages 470,000 barrels per day platforms.
(bpd), is so far unaffected. “The smallest union Lederne rejected the
Later that day Lederne announced that offer and opted to strike,” NOGA said in a
workers at other fields would also down tools statement on October 2. “It has also demanded
on October 4 unless its demands were met. The that the area covered by the collective pay
union represents around 1,000 workers in total. settlement is expanded – which falls outside
The 126 additional workers are stationed at the scope of the negotiation over offshore
the Equinor-operated Gudrun, Gina Krog and agreements.”
Kvitebjorn fields, as well as the Neptune Ener- Equinor said on September 30 that produc-
gy-run Gjoa field, all of which have now been tion at Sverdrup, the largest oilfield in Western
closed. The Gjoa field and its satellite Vega, oper- Europe, was unaffected by the strike “for the
ated by Germany’s Wintershall Dea, have also present.” NOGA confirmed on October 2 that
been shut down this was still the case. Sverdrup accounts for
The six fields produce a combined 330,000 around a quarter of Norwegian oil supply. ™

PROJECTS & COMPANIES

Aker BP cleared to start

Aerfugl Phase-1

NORWAY NORWEGIAN oil producer Aker BP is clear can be obtained, the NPD said. Until then it will
to start production from the first phase of the be reinjected to boost oil recovery at Skarv.
Aerfugl has a break- Aerfugl gas and condensate field after gaining Aerfugl was proven in 2000 and approved
even cost of only $15 approval from authorities, the Norwegian Petro- for development in April 2018. Aker BP
per barrel. leum Directorate (NPD) said on October 2. operates Aerfugl with a 23.8% stake, while
Aerfugl will be developed in two phases, each Norway’s Equinor has 36.2%, Germany’s
involving three wells that will be tied to Aker BP’s Wintershall Dea has 28.1% and Poland’s
Skarv floating production storage and offload- PGNiG has 11.9%.
ing (FPSO) vessel for processing and further Aerfugl’s launch will yield 4.2bn cubic metres
transport. annually of gas at full capacity, adding five years
Production is also underway from an earlier to the operational life of the Skarv FPSO. Aker
test well at Phase 1, and a Phase-2 well that was BP has hailed Aerfugl as one of the most profita-
drilled from an available well slot at a template ble projects on the Norwegian Continental Shelf
at Skarv. That well was brought on stream ahead (NCS), boasting a break-even cost of only $15
of schedule in April, after Aker BP was able to per barrel of oil equivalent (boe).
increase the Skarv FPSO’s gas handling capacity. Aker BP reported a $151mn pre-tax profit for
The other two Phase-2 wells are scheduled for the second quarter, compared with a $414mn
commissioning in 2023. The export of Aerfugl’s loss in the previous three months, thanks to
gas from Skarv will be postponed until capacity higher production and impairment reversals. ™

P18 www. NEWSBASE .com Week 40 08•October•2020