Page 13 - Euroil Week 35 2019

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NEWS IN BRIEF
EurOil
Equinor completes sale
of in Lundin Petroleum,
purchase at Sverdrup
Equinor and Lundin have completed both parts of the transaction announced on July 7 2019. is follows all transaction conditions being met, including government and regulator approvals.
e overall result is that Equinor has divested a 16% shareholding in Lundin for a direct interest of 2.6% in the Johan Sverdrup eld and a cash consideration of around $650mn.
e rst part, Sparebank1 Markets’ acquisition of around 54.5mn shares in Lundin Petroleum from Equinor, concluded on August 5 and followed the approval of the transaction in Lundin Petroleum AB’s Extraordinary General Meeting on July 31 2019.
e second part, Equinor Energy’s acquisition of a 2.6% interest in the Johan Sverdrup eld from Lundin Norway, concluded on August 30. e e ective date of this acquisition is January 1 2019.
Equinor, August 30 2019
PGNiG drills North Sea wildcat
PGNiG has drilled its rst wildcat as an operator on the Norwegian continental shelf, the Polish gas company said on August 30.
e well is the rst at production licence 838, which PGNiG operates with a 40% stake. It is targeting the Shrek prospect located 2,300 metres under the seabed in waters 358 metres deep. e drilling site is near the Skarv oil and gas eld, where PGNiG has a 12% interest.
“ e main objective of our operations in Norway is to scale up our own production of gas in the region,” PGNiG president Piotr Wozniak said in a statement. “Now we
also have the opportunity to develop our competencies and expertise as an operator, which proves the trust Norwegian partners place in PGNiG.”
PGNiG secured licence 838 in 2016 together with its Norwegian partners Aker
BP and Lime Petroleum, which each have 30%. It now has interests in 26 licences on the Norwegian shelf, and struck a deal to buy into two more in June. It is targeting an output of 2.5bn m3/yr of gas in the country a er 2022, and plans to use some of these resources to ll its planned 10bn m3/yr pipe to Poland.
PGNiG is drilling the Shrek well using the
Deepsea Nordkapp semi-submersible, on hire from Norway’s Od ell Drilling. e work
will take 45 days to complete in the event of a discovery.
August 30 2019
Equinor gets greenlight for Johan Sverdrup
e Norwegian Petroleum Directorate (NPD) has granted its consent for start-up of the Johan Sverdrup eld in the North Sea. e eld is expected to produce oil for the next 40 years.
Operator Equinor plans start-up sometime this autumn for the rst phase of the eld development. Construction phase two is slated to start in the fourth quarter of 2022.
“ e Johan Sverdrup eld is a shining example of the possibilities and the values
that can be achieved through exploration of mature petroleum provinces on the shelf,” says Ingrid Sølvberg, Director Development and operations in the NPD.
She reminds us that Johan Sverdrup is the third largest oil eld on the Norwegian shelf – measured in reserves. Only Stat ord and Eko sk, both also in the North Sea, are larger.
e eld is located in blocks 16/2, 16/3, 16/5 and 16/6, 155 kilometres west of Karmøy and 40 km south of the Grane eld. e eld was proven by Lundin in the autumn of 2010 through well 16/2-6 (“Avaldsnes”).
e eld comprises three production licences; 265, 501 and 502, in addition to 501B. e Johan Sverdrup Unit (JSU) was established by a decision in the Ministry of Petroleum and Energy in July 2015. Consent for start-up of the eld is being granted to the licensees in the Johan Sverdrup Unit (JSU).
According to Equinor, investment costs for development of the rst stage of construction are expected to be NOK83bn.
Estimates indicate that the total recoverable reserves are about 430mn cubic metres of oil equivalents (2.7bn boe)
About 95% of this is oil, 3% is dry gas and the rest is NGL. e eld has a production capacity of (660,000 barrels per day).
Solvberg notes that the job is not done and that the NPD focuses on ensuring that the licensees “continue to work to develop production technology and that they make decisions to promote measures that can enhance value creation from the eld.”
e Johan Sverdrup development is being implemented in two stages of construction. e rst construction stage includes a eld centre with four installations connected by bridges. e four installations are a living
quarters platform with auxiliary systems, a process platform, a drilling platform and a riser platform.
Pipelines for transporting oil and gas,
the power from shore unit and three subsea templates for water injection are linked to the riser platform.
e second construction stage consists
of an expansion of the eld centre with a
new process platform, ve subsea templates connected to the eld centre and development of the outer areas of the reservoir.
Further development of central areas is also planned through additional wells from the drilling platform.
Electric power for normal operation of the Johan Sverdrup eld will be supplied from the land-based grid. Operation of the area solution for power from shore is de ned in the Plan for Installation and Operation (PIO).
Gas and stabilised oil will be transported through a gas pipeline to Statpipe and an oil pipeline to Mongstad, north of Bergen.
NPD, September 2 2019
Wood secures contract
extension with TAQA in UK
North Sea
Wood has been awarded a contract extension for engineering, construction and maintenance services on TAQA’s North Sea assets.
E ective immediately, the 18-month extension builds on a previous agreement covering the Cormorant Alpha, Eider, Tern, North Cormorant and subsequently Harding o shore assets, and will see Wood’s activities continue to support these installations.
e work will be delivered by Wood’s Aberdeen-based operations and engineering teams, with construction and maintenance operatives working o shore.
Dave Stewart, CEO of Wood’s Asset Solutions business in Europe, Africa, Asia & Australia, comments: “We are delighted to continue our long-standing relationship with TAQA having rst partnered with them to support these North Sea assets over a decade ago.
“Wood has a wealth of experience in safely maintaining o shore installations across the UK North Sea, helping to maintain operational excellence, extend eld life and maximise economic recovery.”
Wood is exhibiting at O shore Europe 2019 from 3 – 6 September. Visit us at stand 3E40 to experience the Art of the Possible; showcasing our people and broadened
Week 35 05•September•2019
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