Equinor awarded 27 new production licences on the Norwegian continental shelf
The Ministry of Energy has awarded Equinor 27 new production licences in this year's Awards in Predefined Areas (APA).
Equinor was awarded 20 licences in the North Sea, six in the Norwegian Sea and one in the Barents sea. Equinor is the operator of seven of the licences and a partner in 20.
"There are still substantial resources on the Norwegian continental shelf (NCS). Together with our partners, we need to explore more to contribute to European energy security and maintain our position as a reliable supplier of oil and gas. The annual award of pre-defined areas is crucial to ensure high export levels over time. We will continue to make robust investments, and our ambition is to drill around 250 exploration wells by 2035. In order to do this, we need regular access to acreage," says Jez Averty, Equinor's senior vice president for subsurface, the Norwegian continental shelf.
Equinor operates 35 offshore platforms that together make up an extensive network of amortised production, processing and export infrastructure. Discoveries in areas with existing infrastructure can be developed rapidly, at lower costs, and with lower greenhouse gas emissions from production and transport.
"We have a significant portfolio of smaller discoveries near existing infrastructure. We're working alongside the supplier industry to accelerate developments and reduce costs, which will ensure that several of these discoveries can come on stream even earlier. One good example is Eirin, which will be tied back to Gina Krog. This development was approved in January 2024, and we expect production to start in the end of 2025. The gas from Eirin will have very low production emissions, since the Gina Krog platform is electrified. Moreover, it will extend Gina Krog's lifetime by seven years," Averty continues.
As regards discoveries that require new development solutions, Equinor will prioritise solutions that yield low emissions.
"Despite most exploration wells being drilled near existing infrastructure, it is important that we also explore new areas and new ideas and concepts with the potential for more major discoveries. Our confidence in the Norwegian shelf remains strong and we are prepared to take steps to secure the future energy supply," Averty concludes.
About Equinor and exploration on the Norwegian continental shelf
- Equinor operates or participates in 20-30 exploration wells on the NCS annually.
- About 80 percent will be near existing infrastructure and in known geology.
- About 20 percent are new ideas that are being matured based on continuous development in our knowledge of the geology offshore.
- Existing fields are being depleted and produce less oil and gas over time. In order to meet our customers’ demands, we still need to look for new energy sources.
- Additional wells are needed each year to uncover the remaining resources, as the number of barrels per well is far lower than was the case in the 80s.
- Even as we move towards a net-zero future, the world still needs predictable, reliable, and stable energy supplies. Exploration is key to ensuring continuity in this regard.
- With three gas processing plants, one oil refinery, two oil terminals, an LNG plant and a pipeline network of nearly 9000 km, the Norwegian oil and gas infrastructure is strategically positioned to deliver energy to our most important markets in Europe and the UK.
