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Released June 11, 2024 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Norway's oil and gas major, Equinor (NYSE:EQNR) (Stavanger, Norway), has confirmed plans to invest more than NOK 12 billion (US$1.1 billion) to develop the gas infrastructure of its Troll Westfield in the North Sea.
The company and partners said the investment is needed to accelerate production from the reservoir and to "maintain the current high gas export levels" from the Troll and Kollsnes assets to 2030. The first stage of gas production from the Troll West gas province started in 2021 and included eight wells and a new pipeline to the Troll A platform, as well as a new inlet module. It helped extend plateau production by five to seven years. The new Stage 2 will further extend plateau production by around four years and reduce the production decline over the next 10-12 years, Equinor stated. The company started production from its Troll Phase 3 project in the summer of 2021. At the time it claimed a break-even price below $10 per barrel and CO2 emissions of less than 0.1 kilogram per barrel oil equivalent (boe), with Equinor proclaiming it one of its most profitable projects ever while featuring the lowest CO2 emissions. For additional information, see September 8, 2021, article - Equinor Starts Production at Troll Gas Project.
Kjetil Hove, Equinor's executive vice president for Exploration and Production Norway, said: "We have been working alongside our partners, Gassco and the Norwegian authorities to maximize energy deliveries from the Norwegian Continental Shelf (NCS) since 2022. This project will allow Troll and Kollsnes to continue their substantial contributions to the role of the NCS in guaranteeing European energy security in challenging times. The gas from Troll alone meets around 10% of Europe's demands."
The second stage of the Troll Phase 3 (TP3 II) project encompasses eight new wells from two new templates with subsea controls extended from existing templates while a new gas flowline will be laid as a tie-back to the Troll A platform. This project is expected to require modification work on Troll A and the first wells are slated to come onstream at the end of 2026. The new infrastructure will boost production from the reservoir to roughly 55 billion standard cubic meters (Bcm) of gas, an increase of around 7 Bcm of gas at its peak.
Some key contracts for the project have been awarded to a number of companies. OneSubsea (Fornebu, Norway) was awarded the front-end engineering and design (FEED) contract with an option for detailed engineering, procurement and construction of subsea production systems, including umbilicals. It is valued at around NOK 2 billion (US$190 million). A pipe-laying contract for the 36-inch gas pipeline has been awarded to Allseas Group S.A. (Chatel-Saint-Denis, Switzerland). Odfjell Drilling (Aberdeen, United Kingdom) and its Deepsea Aberdeen drilling rig have been awarded the drilling contract, worth NOK 1.2 billion ($122 million) for the eight production wells. Drilling will start in late 2025, or early 2026.
"This is a highly profitable project that will secure high gas production from the Troll field. The partnership's decision is important in order for us to fully utilize the capacity of existing infrastructure," said Geir Tungesvik, Equinor's executive vice president of Projects, Drilling & Procurement (PDP). "We've chosen to use solid, familiar suppliers, most of which already have framework agreements with us. It's a clear advantage that several of them have experience from the previous stage of the Troll Phase 3 development. We will build on this to achieve safe and efficient deliveries and implementation."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The company and partners said the investment is needed to accelerate production from the reservoir and to "maintain the current high gas export levels" from the Troll and Kollsnes assets to 2030. The first stage of gas production from the Troll West gas province started in 2021 and included eight wells and a new pipeline to the Troll A platform, as well as a new inlet module. It helped extend plateau production by five to seven years. The new Stage 2 will further extend plateau production by around four years and reduce the production decline over the next 10-12 years, Equinor stated. The company started production from its Troll Phase 3 project in the summer of 2021. At the time it claimed a break-even price below $10 per barrel and CO2 emissions of less than 0.1 kilogram per barrel oil equivalent (boe), with Equinor proclaiming it one of its most profitable projects ever while featuring the lowest CO2 emissions. For additional information, see September 8, 2021, article - Equinor Starts Production at Troll Gas Project.
Kjetil Hove, Equinor's executive vice president for Exploration and Production Norway, said: "We have been working alongside our partners, Gassco and the Norwegian authorities to maximize energy deliveries from the Norwegian Continental Shelf (NCS) since 2022. This project will allow Troll and Kollsnes to continue their substantial contributions to the role of the NCS in guaranteeing European energy security in challenging times. The gas from Troll alone meets around 10% of Europe's demands."
The second stage of the Troll Phase 3 (TP3 II) project encompasses eight new wells from two new templates with subsea controls extended from existing templates while a new gas flowline will be laid as a tie-back to the Troll A platform. This project is expected to require modification work on Troll A and the first wells are slated to come onstream at the end of 2026. The new infrastructure will boost production from the reservoir to roughly 55 billion standard cubic meters (Bcm) of gas, an increase of around 7 Bcm of gas at its peak.
Some key contracts for the project have been awarded to a number of companies. OneSubsea (Fornebu, Norway) was awarded the front-end engineering and design (FEED) contract with an option for detailed engineering, procurement and construction of subsea production systems, including umbilicals. It is valued at around NOK 2 billion (US$190 million). A pipe-laying contract for the 36-inch gas pipeline has been awarded to Allseas Group S.A. (Chatel-Saint-Denis, Switzerland). Odfjell Drilling (Aberdeen, United Kingdom) and its Deepsea Aberdeen drilling rig have been awarded the drilling contract, worth NOK 1.2 billion ($122 million) for the eight production wells. Drilling will start in late 2025, or early 2026.
"This is a highly profitable project that will secure high gas production from the Troll field. The partnership's decision is important in order for us to fully utilize the capacity of existing infrastructure," said Geir Tungesvik, Equinor's executive vice president of Projects, Drilling & Procurement (PDP). "We've chosen to use solid, familiar suppliers, most of which already have framework agreements with us. It's a clear advantage that several of them have experience from the previous stage of the Troll Phase 3 development. We will build on this to achieve safe and efficient deliveries and implementation."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
