Equinor and partners on Wednesday submitted a plan to develop a cluster of gas and condensate discoveries in the Norwegian Sea for 9 billion crowns ($940 million), part of a rush of new petroleum projects expected in Norway this year.
Halten East contains reserves of around 100 million barrels of oil equivalent, 60% of which is natural gas, and is expected to begin exporting to Europe in 2025, Equinor said
The project would develop an area with six gas and condensate discoveries, with the option of developing a further three prospects, Equinor said in a statement.
“Halten East utilises the existing gas infrastructure on the Norwegian continental shelf (NCS) and will add important volumes that will generate substantial value,” it said.
During the COVID-19 pandemic, Norway introduced tax incentives for field developments introduced by the end of 2022, part of the country’s bid to extend the life of its oil and gas industry for decades.
As a result, Norway expects to receive a large number of plans for new developments this year, adding to, or replenishing, its current output of around four million barrels of oil equivalent per day.
Following Russia’s invasion of Ukraine, European nations have also become more interested in securing supplies from Norway, Minister of Petroleum and Energy Terje Aasland told Reuters.
“The debate in Europe has changed a lot over the last six months,” Aasland said. “When I attended the IEA ministerial meeting in March, the question was how Europe can get enough oil and gas.”
Oil service firms Aker Solutions and Technip FMC won contracts to supply much of the equipment and installation services needed, Equinor said.
Operator Equinor holds a 57.7% stake in Halten East while Vaar Energi holds 24.6%, Spirit Energy 11.8% and Norway’s Petoro 5.9%.