Page 11 - EurOil Week 04 2022

EurOil PERFORMANCE EurOil

Norway’s gas supply beats

forecast in December

NORWAY NORWAY’S natural gas output surpassed the oilfield in the North Sea has been a driving force
government forecast by 5.7% in December, behind Norwegian production growth in the
Norwegian producers reaching 353.1mn cubic metres per day, the Nor- past two years since its launch. Sverdrup is cur-
had an incentive to wegian Petroleum Directorate (NPD) reported rently producing at a rate of 535,000 bpd.
ramp up gas supply. on January 20. Offsetting Sverdrup’s impact, some Norwe-
Production was also up 2% month on gian producers have been sending gas to Europe
month and 6.4% year on year, helping ease to capitalise on high prices that would otherwise
the tight gas market in Europe. Gas prices have been pumped back into reservoirs to boost
were particularly high in late December, with oil recovery.
the month-ahead contract at the Dutch TTF The bump in Norwegian gas output came
gas hub spiking at €184 ($208) per MWh on before the government unveiled awards in its
December 21, and this may have encouraged latest Awards in Predefined Areas (APA) licens-
Equinor and other Norwegian exporters to ing round on January 19. The government said
bring more wells on stream. the awards, which included 53 licences across the
Norwegian oil and other liquid production North Sea, the Norwegian Sea and the Barents
averaged 1.841mn barrels per day (bpd) last Sea, showed there was “great” interest in explor-
month, missing the forecast by 2.9% and com- ing the Norwegian shelf. But the result was less
ing in 1% lower y/y. But it was also up 6.9% m/m. successful than that of the previous APA round,
Rising flow from Equinor’s Johan Sverdrup when 61 licences were awarded. ™

PROJECTS & COMPANIES

Equinor expects speedy recoup of

Martin Linge investments

NORWAY HIGH oil and gas prices mean that Equinor would have to drill several new wells to replace
expects to recoup all its investments in its trou- ones sunk by TotalEnergies that it considered
Linge only began ble-ridden Martin Linge gas project off Norway unsafe.
flowing gas in June by the end of this year, the company reported on Despite these troubles, Equinor CEO Anders
2021. January 27. Opedal said on January 27 that while Mar-
Linge only began flowing gas in June 2021 - tin Linge was a challenge to realise, the field is
five years later than originally scheduled and at now producing efficiently, with “world-class”
a cost of NOK63bn ($7.3bn), or twice its initial performance.
budget. The field’s development was beset with “With current prices, investments in the field
complications and setbacks. Its geology proved will be recovered in full during 2022,” he said in
more difficult to work with than anticipated, a statement.
and in 2017, there was a tragic crane crash at the Production is expected to reach a plateau rate
South Korean shipyard tasked with building its of roughly 115,000 barrels of oil equivalent per
platform, leading to a further delay. day this year, Equinor said, and some 260mn
Former operator TotalEnergies left the pro- boe should be recovered in total over the pro-
ject in 2018, to be replaced by Equinor, but prob- ject’s lifespan.
lems continued. First there were coronavirus Opedals was speaking ahead of the field’s for-
restrictions, which led Equinor to shelve work mal opening by the Norwegian government on
at the site, and later the company discovered it January 27. ™

Week 04 27•January•2022 www. NEWSBASE .com P11