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Equinor's Cost Changes in Projects on the Norwegian Continental Shelf

Gasoil News - Published on Thu, 10 Oct 2019

Image Source: equinor.com
Equinor is the operator for 21 projects in the implementation phase, with a total investment of around 210 billion kroner. 20 of these are on the Norwegian shelf or at Norwegian onshore facilities. Production from the first phase of Johan Sverdrup started on 5 October, well ahead of schedule, while costs have been reduced by NOK 31.4 billion in 2019-kroner. Mr Anders Opedal executive vice president for technology, projects and drilling said that we have started production from four fields on the Norwegian shelf in less than three months. In addition to the giant Johan Sverdrup field, we have also started operations on Trestakk, Snefrid Nord and Utgard. All have been delivered ahead of or on schedule, and most of them have reduced costs compared with the cost estimate in the plan for development and operation.

The Ministry of Petroleum and Energy reports on the status of major projects that are currently undergoing development or have recently started operation. Thirteen of Equinor’s projects are on this list. Eight of the projects have reduced costs since submitting their plans for development and operation, one project remains unchanged, while four projects have reported higher costs. Two projects have seen an increase greater than 20 per cent, which is the standard range of uncertainty in PDO cost estimates. Since the previous report to the state budget, estimates for the Martin Linge project have grown by 7.9 billion in 2019-kroner. This project, which had already suffered significant delays and substantial cost overruns, was taken over by Equinor in March 2018.

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Posted By : Rabi Wangkhem on Thu, 10 Oct 2019
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