Equinor gets go-ahead for three Norwegian Sea developments

June 28, 2023
Equinor has secured approval from Norway’s authorities for plans for development and operation involving two production hubs in the Norwegian Sea.

Offshore staff

STAVANGER, Norway — Equinor has secured approval from Norway’s authorities for plans for development and operation involving two production hubs in the Norwegian Sea.

The 20-Bcm gas field Irpa (ex-Asterix), with 124 MMboe of associated condensates, will be tied back to the deepwater Aasta Hansteen spar. The Verdande oil and associated gas field and the Andvare gas well will be connected to facilities hosted by the Norne FPSO.

Trond Bokn, Equinor's senior vice president for project development, said, "We are experiencing a strong demand for oil and gas from the Norwegian Continental Shelf [NCS] in the current geopolitical situation…These development projects will quickly bring new production to market with low development costs, while extending the activity on the host platform."

Irpa, in 1,350 m of water, will be the second-deepest development on the NCS to date. The near 80-km subsea tieback should extend the life of the Aasta Hansteen to about 2039.

Westcon Helgeland will deliver large parts of the subsea equipment under sub-contract to TechnipFMC. Momek in Mo i Rana, a subcontractor of Aibel, is responsible for modifying the platform for the Irpa gas tie-in.

Equinor estimates capex at NOK14.8 billion ($1.37 billion), with startup planned for late 2026. The gas will head through existing Aasta Hansteen infrastructure for transportation via the Polarled pipeline to the Nyhamna processing plant in western Norway.

From there, the gas will be sent through the Langeled pipeline system to the UK and mainland Europe.

Verdande will help extend Norne’s productive life and support the 900 person-years of employment (direct and indirect) associated with field operations. It comprises the recent Cape Vulture and Alve Northeast discoveries in 350-380 m of water, and about 300 km southwest of Bodø.

Equinor expects to recover 36 MMboe, mainly oil, at a cost of NOK4.7 billion ($437 million), with startup in fourth-quarter 2025.

Aibel’s modifications and maintenance suppliers in Harstad, and other subcontractors in northern Norway will be involved, with Aibel also performing modifications to the FPSO related to Andvare, which will be drilled as a sidetrack from one of the existing subsea templates on the Norne Field.

Andvare, targeting just under 2 Bcm, will cost NOK500 million ($46.5 million) and should come onstream next year.

06.28.2023