Equinor Announces Cost Increase, Delayed Startup for Martin Linge
Equinor has revised the estimated cost for developing the Martin Linge oil and gas field in the Norwegian North Sea. The field, which the company purchased from Total late last year, is now expected to cost $5.68 billion (NOK 47 billion) to develop, up from the $4.96 billion (NOK 41 billion) estimated last year and 59% higher than the originally planned budget developed in 2012.
“When we acquired the stakes in the Martin Linge Field and took over the operatorship, we allowed for any remaining work and increased costs,” said Margareth Øvrum, Equinor’s executive vice president for technology, projects, and drilling. “We have spent time at the Rosenberg yard to get an overview of this. After successful platform installation the focus is now to ensure high-quality completion of the project and safe startup of the field.”
Startup for the field has also been pushed back from the first half of 2019 to the first quarter of 2020. Equinor acquired Total’s 51% equity stake in the field in November 2017 for $1.45 billion. The field holds estimated recoverable resources exceeding 300 milliion BOE. The jacket substructure was already installed on location when Equinor acquired the field. The topside was completed at the Samsung yard in South Korea and delivered to the site in March. Equinor installed four utility modules at the field in late July.
Despite the cost spike from Martin Linge, Equinor said it has reduced estimated investments for operated projects in the development phase on the Norwegian continental shelf. The operator will spend $3.62 billion (NOK 30 billion) less than previously expected, based on the status for Norwegian projects under development as published in the Norwegian government’s 2019 national budget proposal.
Øvrum said the budget savings were achieved primarily because of increased drilling efficiency, simplification, and “high-quality project implementation.” Also, Equinor said that the reduction of investments for its portfolio is “substantially bigger” when adjusting for the currency effects of a weak NOK. The company has reduced costs at the Johan Sverdrup Phase 1 development by 30% alone.
Kiewit Wins EPIC Contract for Calcasieu Pass LNG Export Project
Venture Global LNG awarded the EPIC contract for its Calcasieu Pass LNG export facility to Kiewit. FID is expected in 2019, completion in 2022.
US To Become Third-Largest LNG Exporter in 2019
The US EIA projects LNG export capacity will rise to 8.9 Bcf/D by the end of next year, making the US the third-largest exporting country in the world behind Australia and Qatar.
Equinor, Faroe To Swap Norwegian Offshore Assets
The deal gives Equinor an additional 7.5% ownership stake in the Njord redevelopment project and associated tiebacks in the Norwegian Sea, and potentially raises Faroe’s value in the midst of a hostile takeover attempt by DNO.
Don't miss out on the latest technology delivered to your email every two weeks. Sign up for the OGF newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
29 November 2018
27 November 2018
10 December 2018
19 November 2018
05 December 2018