Page 12 - Euroil Week 16 2020

EurOil PROJECTS & COMPANIES EurOil
Troll platform gets new lease of life
NORWAY
The extension paves the way for the third phase of development.
EQUINOR and its partners have secured a 10-year extension from Norwegian authorities to operate the Troll B platform at the Troll gas field until 2030.
The extension also covers oil and gas pipelines included in the facility’s approved plan for devel- opment and operation, the Norwegian Petro- leum Directorate (NPD) said in a statement on April 20. The previous permit was due to expire in September this year. Troll B was brought on stream in 1995.
Equinor has a 30.6% stake in Troll, while fellow state producer Petoro owns 56%, Royal Dutch Shell holds 8.1%, France’s Total has 3.7% and ConocoPhillips has 1.6%.
The extension should pave the way for the group to move ahead with exploitation of the Troll Vest gas cap, representing the third stage of the field’s development. The stage, which will cost an estimated NOK7.8bn ($960mn), was earlier scheduled to start in the first half of 2021. Development plans were filed in 2018.
“Extended operation of Troll B secures a foundation for good resource management of significant oil and gas resources from the gigan- tic Troll field,” the NPD said.
While Norway’s Petroleum Safety Authority has approved Troll B’s operation for another ten years, the platform will still require maintenance and modifications during that time.
Nine seismic surveys have been shot at Troll, identifying well targets for the next stage. These wells will operate using a subsea template tied to the platform.
The third phase at Troll is expected to help keep Norwegian gas production stable over the next two decades. Troll is already a significant supplier of gas to the European market, capable of meeting 7-8% of its daily consumption. The field is licensed to produce 36bn cubic metres of gas in the year ending September 30, 2020.
Equinor has traditionally used Troll and Ose- berg as swing fields, raising or lowering their pro- duction depending on prevailing gas prices.™
Aker BP brings Norwegian gas field online three years early
NORWAY
Aerfugl’s launch will add five years to the operational life of the Skarv FPSO.
NORWAY’S Aker BP has announced first gas from the Aerfugl field in the Norwegian Sea three years ahead of schedule, hailing the project as one of the most competitive on the country’s shelf.
Aerfugl, situated just west of Aker BP’s Skarv field, boasts a break-even cost of just $15 per barrel, the operator said. Aker BP has a 23.8% stake in the asset, while Norway’s Equinor owns 36.2%, Germany’s Wintershall Dea holds 28.1% and Poland’s PGNiG has 11.9%.
The project consists of two phases each involving three wells hooked up to a floating production storage and offloading (FPSO) unit at the Skarv field, which entered operations in 2013. Phase 1, targeting the field’s southern sec- tion, is not expected to start up until late 2020.
Phase 2 production was not due to begin until 2023, but Aker BP and its partners have been able to launch one of its wells early after increas- ingthegascapacityoftheSkarvFPSO.Theother two will begin flowing next year.
Aerfugl’s launch will add five years to the operational life of the Skarv FPSO. It is set to yield 4.2bn cubic metres of gas at peak capacity.
Aker BP is jointly owned by Aker with 40% and BP with 30%. It joined other European majors in late March by shaving 20% off its cap- ital expenditure plan for 2020, to protect its bal- ance sheet following the price collapse. It also put all unsanctioned projects on hold, including the Hod redevelopment plan. Aker BP had intended to take a final investment decision (FID) on Hod this year.
Commenting on the market situation, Aker BP’s senior vice-president Kjetel Digre said tens of thousands of oil industry jobs were at risk in Norway, as investments and exploration activi- ties grind to a halt. However, the company said that the industry’s recent proposal to ease its tax burdens temporarily would improve cash flow and result in some work going ahead.
“The industry’s proposal ... will result in increased activity and new investment oppor- tunities offshore Norway within the next 12-24 months,”Digresaid.
Despite its spending cuts, Aker BP has kept its production guidance for 2020 unchanged at 205,000-220,000 barrels of oil equivalent per day (boepd). ™
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w w w . N E W S B A S E . c o m Week 16 23•April•2020