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OMV drops in Q2 amid business area Field Life eXtension (FLX), development, following its work on phase
that was established on April 1 this year.
1.
pandemic FLX organisation in new premises at agreement is estimated at around $150mn
The value of the fixed part of the
The supplier will be integrated in the
Austria’s OMV’s second-quarter production Forus. The companies will collaborate on at the current USD exchange rate. The
dropped 5% year on year and 2% from the the design and planning of the work to costs of integrated services, maintenance
first quarter, largely owing to lockdown be carried out. Common drivers for the and options for drilling five extra wells are
measures in response to the coronavirus parties have been established to support the not included in the estimated value. The
outbreak, disruptions in Libya and weakening ambitions of Equinor FLX. total contract value will depend on the
demand. “With this award we are establishing efficiency of the well deliveries.
Output of oil and gas decreased to a closer collaboration with the supplier. The Johan Sverdrup licence partners are
464,000 barrels of oil equivalent per day Together we will drive simplification and Equinor, as operator, Lundin, Petoro, Aker
(boed) in the second quarter from 490,000 standardization to perform the work safely BP and Total.
boed in last year’s period. and cost-effectively. We will also involve “Johan Sverdrup phase 2 is the next
The group cut its 2020 production target sub-suppliers early to achieve optimal stage in the development of the giant Johan
to 440,000 boed in April from around solutions and common value creation. If we Sverdrup field and a project that strongly
500,000 boed, reacting to tumbling oil are to succeed on FLX’s ambitions, we must impacts activities and spinoffs in Norway.
demand in the wake of the coronavirus radically change the way we work together,” With this contract, Norwegian suppliers
pandemic. says chief procurement officer Peggy have been awarded more than 90% of the
The refining margin dropped to $2.26 Krantz-Underland. project contracts,” says Geir Tungesvik,
from $4.93 in the first quarter as demand The companies will focus on simplified Equinor’s senior vice president for project
for diesel and jet fuel dropped. work processes, standardised products and development.
The group said it recorded a positive solutions, and at the same time benefit from The drilling period is scheduled to start
contribution from refining margin hedges digital technology, such as 3D printing. at the beginning of 2022.
in a mid-double digit million euros Production from Statfjord will be “Deepsea Atlantic drilled the Johan
magnitude and has locked in a positive extended by maturing new reserves for Sverdrup phase 1 wells with excellent
quarterly of a similar magnitude for the recovery and upgrading platforms as results, so we are pleased to secure the
remaining quarters of the year. required. Around 100 new wells will be rig for phase 2 as well. The rig is already
drilled in the period up to 2030. They on a continuing contract with Equinor,
will help maintain the current Statfjord and our ambition is to keep it busy until
Equinor awards framework production level beyond 2025, strongly Johan Sverdrup phase 2 comes on stream
increasing the activity level on the field and
at the end of 2022. Odfjell has a high
deal at Statfjord requiring considerable investments. safety standard and the rig is one of the
most efficient rigs we have,” says Erik G.
Statfjord A was scheduled for
Equinor has, on behalf of the licence decommissioning in 2022, however, it has Kirkemo, Equinor’s senior vice president
partners, awarded Apply a framework been decided to extend the field life to 2027. for drilling and well operations.
agreement for engineering and The lives of the Statfjord B and C platforms Johan Sverdrup phase 2 includes the
installation services on the North will be extended from 2025 to 2040. This construction of a subsea production
Sea Statfjord field. According to the will sustain high value creation from the system, reconstruction of the existing riser
agreement the parties will collaborate in field and secure profitable jobs. During 40 platform and a new processing platform,
new ways while carrying out the work on years of production, Statfjord has generated which will also accommodate a converter
Statfjord safely and efficiently. NOK1600bn in gross revenue for the unit receiving power from shore. This unit
The agreement covers overhaul, owners and Norwegian society. will distribute power to other fields on the
replacement and modification deliveries on The licensees on Statfjord are Equinor Utsira High: Edvard Grieg, Ivar Aasen,
the three Statfjord platforms. The period of Energy (operator), Vår Energi and Spirit Gina Krog and Sleipner. The four existing
agreement is seven years, plus a three-year Energy. platforms on the Johan Sverdrup field are
option. The agreement will take effect on already receiving power from shore and
September 1 2020. EQUINOR (NORWAY) CO2 emissions per barrel are 0.7 kg.
“Our ambition is to become a leading The phase 2 development will increase
late-life operator on the Norwegian Deepsea Atlantic drilling rig the field production capacity from 470,000
continental shelf. In order to succeed, we to 690,000 barrels per day on plateau. The
must apply new working methods to reduce returning to Johan Sverdrup break-even price will be below $20 per
costs. This will create opportunities for new barrel, making Johan Sverdrup a highly
investments in late-life fields, so that we can Equinor and its partners have signed a profitable field with a very low CO2
extract the last resources in a profitable way letter of intent with Odfjell Drilling for footprint.
and with low carbon emissions,” says Kjetil the Deepsea Atlantic rig to drill 12 wells
Hove, senior vice president for the new during phase 2 of the Johan Sverdrup field EQUINOR (NORWAY)

P18 www. NEWSBASE .com Week 27 09•July•2020