Tag Archives: Equinor

Equinor: Oil discovery in the US Gulf of Mexico

Equinor and co-venturers Progress Resources USA Ltd and Repsol E&P USA Inc. have encountered oil in the Monument exploration well in the US Gulf of Mexico.

The Monument exploration well found approximately 200 feet (c. 60 metres) of net oil pay with good reservoir characteristics in Paleogene sandstone.

This provides an early indication of the productive reservoir interval at the well location. The well was drilled to a total depth of 33,348 feet (10,164 metres) using the Pacific Khamsin rig

Read entire article HERE.

World Oil: Equinor sees Johan Sverdrup production ramp faster than expected

OSLO – Equinor’s Johan Sverdrup field in the North Sea expects to reach plateau production for the first phase in early May, earlier than anticipated. Due to higher plant capacity, plateau production will increase from around 440,000 boepd to around 470,000 boepd.

Plateau production was previously expected to be reached during the summer. At the end of March, daily production had already exceeded 430,000 boepd.

Read entire article HERE.

NY Reviewer: Equinor to Depart U.S. Lobby Group IPAA over Climate Policy

Equinor will depart industry lobby the Independent Petroleum Association of America (IPAA) over a disagreement about climate policy, the energy generator stated Friday.

The Norwegian firm is undertaking a review of its memberships of sector associations under a settlement with a group of institutional buyers, the Climate Action 100+, signed last April.

Particularly, Equinor cited the IPAA’s support for the U.S. Environmental Protection Agency’s (EPA) reversal of U.S. federal methane laws, which the corporate criticized.

Read entire article HERE.

World Oil: Defining the oilfield service sector’s role in meeting CO₂ goals

FLORENCE, ITALY – As operators worldwide set ambitious net-zero-emissions goals, oilfield service companies have an opportunity to both play a key role in meeting these targets, and take a leadership position in shaping the path of the coming energy transition.

“We are working on many fronts to practically reduce the carbon footprint of oil and gas, and we are learning how to better account for carbon as well,” said Chris Jones, Vice President, Europe Oilfield Services at Baker Hughes. The service company is following the lead of major operators like Repsol in establishing its own zero-emissions goals for the year 2050.

Understanding the full carbon signature of oil and gas operations is key – when there is a thorough understanding of where carbon is released throughout the exploration process, strategies can be implemented to proactively manage those releases.

Read entire article HERE.

Government: APA 2019: New High Award Secures Further Exploration of the Norwegian Continental Shelf

The Norwegian Ministry of Petroleum and Energy offers 69 production licenses on the Norwegian continental shelf in the Award in Pre-Defined Areas 2019 (APA 2019).

– I am proud to offer 69 new production licenses in this year’s APA round. The companies show great interest in further access to new exploration acreage. This means that the industry believes in future value creation on the Norwegian continental shelf, says Minister of Petroleum and Energy, Sylvi Listhaug.

The 69 production licenses are located in the North Sea (33), the Norwegian Sea (23) and the Barents Sea (13). A total of 28 different oil companies, ranging from the large international majors to smaller domestic exploration companies, are offered ownership interests in one or more production licenses. Of these, 19 will be offered operatorships. The licenses are awarded with work-programme commitments or as additional areas to such licenses.

– Hopefully, the exploration in the awarded acreage will result in new discoveries. This is important to ensure employment, value-creation and future government revenue for Norway’s largest industry, says Listhaug.

The APA licensing rounds cover the most explored areas on the Norwegian shelf. One of the primary challenges in mature areas is the expected decline in discovery size.

Smaller discoveries may not be able to carry standalone developments, but can have good profitability when making use of existing and planned infrastructure. It can also be seen in context with other discoveries or planned developments. Timely discovery and exploitation of such resources is therefore important. 

Background

The first licensing round on the Norwegian continental shelf (NCS) took place in 1965. The activity started in the North Sea, and exploration in the Norwegian Sea and the Barents Sea started around 15 years later. Thus, Norway will soon have more than 40 years of experience in all sea-areas on the NCS.

Approximately 225 000 people are today directly or indirectly engaged in the Norwegian petroleum sector. The competence and the competitiveness in the industry also produces positive ripple effects into other industries. Since the first oil-discovery was made, the sector has contributed with over 14 900 billion NOK in value creation. It has also given the Norwegian state a net cash-flow of over 6 450 billion NOK since the start of the new millennium. The State’s net cash-flow in 2020 from the petroleum sector is estimated to be approximately 245 billion NOK. That equals approximately 185 000 NOK for a family of four.

The award of new exploration acreage takes place in two equal licensing rounds. The numbered rounds takes place in the least known exploration areas, which for all practical purposes now means remaining parts of the deep-water areas in the Norwegian Sea and parts of the Barents Sea. Acreage in the best-known exploration areas is awarded in the annual APA-rounds. As a consequence of the fact that exploration has been going on for decades, the majority of the North Sea, large parts of the Norwegian Sea and an increasing area in the Barents Sea is now included in the APA-rounds.

The only difference in the process for the two rounds is in how the authorities stipulates the applicable area. In the numbered rounds, this happens after proposals (nominations) from the companies. This gives the authorities the best possible basis for announcing the areas that will give the most information about the regional geology and thus, effective exploration. This approach is not needed in the APA-rounds, where the key challenge is to identify resources in a timely manner in order to best utilise existing and planned infrastructure in the area.

The petroleum activity on the NCS is conducted with great emphasis on health, safety and the environmental standards. Exploration, development and production takes place with low emissions to air. Greenhouse gas-emissions is a part of the EU Emissions Trading System (ETS). In addition, a high CO–tax is paid.  This policy gives the companies financial incentives to reduce their own emissions, as recently demonstrated by the industry’s initiative to cut emissions from the activities on the NCS. In a system like the ETS, the only way to reduce total emissions is to reduce the number of quotas available.

The level of safety on the NCS is high, and normal exploration-activities, development and production has no proven negative effects on the natural environment. As with all other industrial activity, petroleum activities leads to the risk of accidents with consequences for employees lives and health, loss of established infrastructure and the natural habitat. Great emphasis has therefore been made to avoid large-scale accidents.  

Potential damage to the natural environment is limited to large accidental oil spills. The probability of an oil-well blow-out is estimated to be one in more than every 7000 exploration wells drilled. On the NCS, approximately 50 wells are drilled each year. There has been very few larger oil spills on the NCS. There are requirements in place for emergency preparedness in order to reduce the consequences in the event of an accidental oil spill. Restrictions have in addition been placed on exploration drilling in oil-bearing layers for parts of the year. During 50 years of petroleum activities, no accidental oil spills have reached Norwegian shores, and no damage to the marine environment has been proven.

  1. Map
  2. Awards with work-programme

Offer of licenses to 28 licensees

(Number of licenses /operatorships)

Aker BP (15/9)

AS Norske Shell (5/2)

Capricorn (3/3)

Chrysaor (8/3)

Concedo (4/0)

ConocoPhillips (5/3)

DNO (10/2)

Edison (2/1)

Equinor (23/14)

Idemitsu (2/0)

INEOS (2/1)

Lime (2/0)

Lotos (2/0)

Lundin (12/7)

Neptune (13/4)

OKEA (5/2)

OMV (4/1)

ONE-Dyas (3/0)

Pandion (3/0)

PGNiG (3/0)

Repsol (1/0)

Source (3/0)

Spirit (6/1)

Suncor (5/2)

Total (2/1)

Vår Energi (17/7)

Wellesley (7/3) 

Wintershall Dea (9/3)

Offshore: Equinor ties up offshore Norway automation, safety needs

STAVANGER, Norway – Equinor has awarded new framework agreements to five suppliers for safety and automation systems for its facilities across the Norwegian continental shelf.

The agreements may also be extended to the company’s international E&P activities and for new development projects.

Total value of the five-year fixed periods is just above NOK5 billion ($554 million), with three five-year extension options depending on the lifespan of the installations.

The arrangements cover daily operation and maintenance, modifications and upgrading, with cyber security an increasingly important part of the work scope.

Kongsberg Maritime: Norne, Heidrun A and B, Åsgard A and B, Kristin, K-lab Kårstø, Statfjord A, B, C and Johan SverdrupMariner has a separate agreement. 

Read entire article HERE.

MAREX: Norwegian Spill Response Firms Take Aim at Ocean Plastic

A consortium of Norwegian researchers and environmental response companies plans to use oil spill response technology to clean up ocean plastic and other marine waste. The group, which calls itself “Clean Oceans,” has been designated an “Arena cluster project” by the Norwegian government’s R&D agency, Innovation Norway. 

The consortium will apply Norwegian oil spill prevention and response technology to help solve the challenges of plastic and other marine waste in oceans and waterways. It has its roots in the Norwegian Oil Spill Control Association (NOSCA), the professional forum for Norwegian oil spill prevention and response companies. Well-known members include Sintef, Framo, Kongsberg Satellite, the Norwegian Coastal Administration and Equinor, among many others.

Read entire article HERE.

World Oil: Equinor hopes for a dry well near Troll, for potential CO₂ storage

OSLO – For the first time, an exploration well is being drilled in the North Sea where the objective is not to find oil or gas.

The well is being drilled south of the Troll field in the North Sea, and the objective is to investigate whether the reservoir in the deep Johansen Formation is suitable for storage of carbon dioxide (CO₂).

The Northern Lights project, consisting of Equinor, Shell and Total, is drilling wildcat well 31/5-7 Eos. The West Hercules rig is responsible for the operation.

This will be the first well to be drilled in exploitation license 001, and the objective of the well is to prove sandstone and the storage potential for CO₂ in the Cook and Johansen geological formations. The companies also want to examine the sealing properties of the overlying Dunlin shale.

Read entire article HERE.

Hellenic Shipping News: Best Year For Discoveries On NCS Since 2014

Commenting on Equinor’s oil and gas discovery near the Fram field in the Norwegian North Sea, announced on 6 November 2019, senior analyst Palzor Shenga at Rystad Energy said:

“After a string of recent discoveries, 2019 is shaping up to be the most successful exploration year since 2014 on the Norwegian Continental Shelf (NCS).”

Conventional discovered resources Norway 2014 2019 million barrels of oil equivalent Rystad Energy ECube November 2019

Read entire article HERE.

Equinor: Oil and gas discovery in the North Sea

Equinor and partners ExxonMobil, Idemitsu and Neptune have discovered oil and gas in exploration well Echino South, 35/11-23, by the Fram field in the North Sea. Recoverable resources are estimated at 6-16 million standard cubic metres of oil equivalent, corresponding to 38-100 million barrels of oil equivalent.

“We are making one of this year’s biggest discoveries in the most mature area of the Norwegian continental shelf (NCS), not far from the Troll field. This demonstrates the opportunities that still exist for value creation and revenue from this industry,” says Nick Ashton, Equinor’s senior vice president for exploration in Norway and the UK.

Adding considerably to the resources in this part of the North Sea, the discovery will probably be tied back to existing infrastructure. Further knowledge of the area and new data investments have increased our confidence in the exploration opportunities in this part of the northern North Sea.

Read entire article HERE.