Equinor Says It's There for European Energy Security

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Norwegian oil and gas major Equinor said it made a discovery in the North Sea that could hold as much as 50 million barrels of recoverable oil equivalent. Facing production declines, the company said its set on maintaining steady production through 2035.

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New Discovery in Oseberg

Meeting 20% of the oil demand and 30% of the appetite for natural gas for the European Union, Norway's potential to support energy security improved with a new discovery in the Oseberg field of the North Sea.

Equinor said it made a discovery in the North Sea field using the Deepsea Bergen drillship. Along with partners including French major TotalEnergies, Equinor put the preliminary volume at between 19 million and 50 million barrels of recoverable oil equivalent, adding the partners are planning for a "fast and cost-effective development."

Industrial Info Resources is tracking several drilling-related projects associated with Equinor. Among the largest by investment value is the Atlantis program in the North Sea. With completion expected by 2030, operator Equinor aims to drill and complete as many as three production wells using a jack-up rig.

Proven reserves there are estimated at between 19 million and 63 million barrels of oil equivalent, data show.

For the Oseberg discovery, Frode Skarstein, a senior vice president for exploration and production at Equinor, said the company would tie it to existing subsea facilities.

"By making use of already-paid-for infrastructure, we achieve good resource utilization and competitive barrels," he said.

Norway is among Europe's larger suppliers of crude oil and natural gas, a role that was amplified in the wake of the 2022 initial invasion of Ukraine when sanctions limited legacy supplies from Russia. Conflict simmering in the Middle East, meanwhile, is limiting what's available globally in terms of crude oil and natural gas.

On Wednesday, the United Kingdom Maritime Trade Operations Center reported two ships were hit by projectiles while moving through the Strait of Hormuz. Carrying around 20% of the global maritime trade in oil and gas before fighting began in February, vessels are now moving through at a trickle and causing a global supply shortage.

"Norwegian oil and gas are essential to European energy security," Equinor said.

Uncertain Future for Norwegian Continental Shelf

The company said that, in order to ensure the European Union is well stocked, it needs to ramp up its exploration and production activity. To that end, Equinor said it aims to drill hundreds of new wells over the next decade.

The company has raised concerns about the remaining prospects on the Norwegian Continental Shelf. Before 1986, when the company was known as Statoil, new discoveries could reach as much as 170 million barrels. Now, as in the case of the Atlantis find, discoveries are closer to 10 million barrels.

During the second quarter, however, Equinor said it achieved equity production of 2.1 million barrels of oil equivalent per day (Boe/d), a 3% increase year-on-year. Production from new fields accounted for the bulk of the increase.

The company on Wednesday added that its aim is to maintain production at a rate of around 1.3 million Boe/d through 2035.

"Around 70% of this will come from new wells and developments," the company said.

By the Numbers

• 50 million: Barrels of recoverable oil equivalent reserves in latest North Sea find
• 3%: Year-over-year increase in Equinor production to the second quarter

Key Takeaways

• Equinor says it's there to provide support for European energy security.
• Production from the Norwegian Continental Shelf is on the decline.

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