Page 10 - EurOil Week 07 2022

EurOil ENERGY TRANSITION EurOil

Norway’s Equinor to revise

offshore wind plans

NORWAY NORWAY’S energy company Equinor has told of Equinor’s renewable energy business, told
Reuters that it must revise its offshore wind plans Reuters.
Norway wants domestic because the Oslo government has decided that “Our starting point for Soerlige Nordsjoe II
wind farms to only cater the first such offshore wind plants can only sup- has been to develop a strong business case based
to domestic demand. ply domestic power users. Equinor is 67% owned on a hybrid type of model,” he said, referring to
by the Norwegian government. so-called hybrid connections to grids in more
This is important because Equinor has than one country.
teamed up with both Germany’s RWE and “Norway is very high on our agenda, but we
Norsk Hydro, an aluminium and renewable also need to make sure that we have the possibil-
energy company. They will bid for ocean acreage ity of developing robust business cases, and that
to build wind farms near the border with Den- we don’t know yet,” he also told Reuters.
mark in the 3-GW Sørlige Nordsjø II offshore Power prices have soared in Norway, as else-
wind zone. where in Europe. They have hit the highest prices
The government on February 9 announced in more than decade, creating a political problem
that projects bidding for the first 1.5-GW phase for the centre-left government. In December, the
of Sørlige Nordsjø II must supply power only government agreed to pay more than half of the
to the Norwegian mainland, whereas those in power bills above a certain rate, and 80% for Q1
second 1.5-GW auction may be able to supply of 2022.
power elsewhere. Prime Minister Jonas Gahr It is a sensitive issue therefore for com-
Stoere has conceded therefore that projects panies to sell power generated from a
might need a government subsidy initially. major project in Norway – or in Norwegian
“This is a case that is quite different from waters – elsewhere. Economists have pointed
the one that we, Norsk Hydro and RWE have to power exports as one of the reasons for
been preparing for,” Paal Eitrheim, the head high electricity prices. ™

PROJECTS & COMPANIES

Hurricane ships 530,000 barrels

from North Sea Lancaster field

UK SOME 530,000 barrels of oil left Hurricane Ener- Hurricane has also issued a financial update,
gy’s Lancaster field last month, the operator said confirming that the UK oil and gas regulator
The Lancaster field’s on February 14, with the P6 well alone averaging has ordered it to put aside additional funds for
performance has 9,500 barrels per day. future decommissioning work. How much this
generally disappointed. This was considered a good result, con- will be is still under discussion, but is expected to
sidering that the troubled project fell past the amount to £5.7mn ($7.7mn). This will boost the
so-called “bubble point” last month, referring overall amount in the trust to £33.7mn.
to when reservoir pressure drops to the level Hurricane also noted it had earned £3.2mn
at which gas is liberated from oil. Despite this, in cash rebates relating to research and develop-
Hurricane is not experiencing production issues ment tax claims originating in the 2019 tax year.
yet, and the company’s main shareholder Crystal HMRC is still reviewing an additional £1.3mn
Amber has said it is hopeful that the field could claim, but that is expected to be received later in
still be in production in 2025. the year.
The 27th cargo of around 530,000 barrels left Lancaster, located west of the Shetland
the field on January 25, Hurricane said in a trad- Islands, contains complex fractured basement
ing update, and the next cargo is due to leave in reservoirs that so far have been left untapped
late March. The most recent cargo was priced at in the UK. The field has significantly under-
$81.4 per barrel, in line with the average for dated performed since its launch in 2019, but recent
Brent quotes in the first five days of January. results have been more promising. ™

P10 www. NEWSBASE .com Week 07 17•February•2022