Page 11 - EurOil Week 04 2022
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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
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