Inspectioneering
News

ConocoPhillips Plans $1.1 Billion Investment as Norway Oil Sector Heats Up

Reuters, May 10, 2022
Reuters

ConocoPhillips submitted on Monday a plan to develop an oil discovery in the Norwegian North Sea for 10.5 billion Norwegian crowns ($1.10 billion), the first of an expected rush of new petroleum projects to be launched in Norway this year.

Known as Eldfisk North, the development is part of the wider Ekofisk area, where ConocoPhillips has pumped hydrocarbons for more than 50 years. The U.S. operator said the new reserves are expected to come on stream in 2024.

The Eldfisk North reservoir contains mostly oil and some gas and is estimated to hold between 50 million and 90 million barrels of oil equivalent, ConocoPhillips said.

During the COVID-19 pandemic, Norway introduced tax incentives for fields covered by development plans introduced by the end of 2022, part of the country's bid to extend the life of its oil and gas industry for decades.

As a result, the country expects to receive "a large number" of development plans in 2022, Minister of Petroleum and Energy Terje Aasland told Reuters on the sidelines of an energy conference.

"This is an exciting year, and shows that the oil tax package is yielding results," he said.

Among plans likely to be presented this year is Equinor's Wisting discovery in the Arctic Barents Sea, which is set to become the world's northernmost oilfield.

"I've spoken to them and they are optimistic with regards to the progression of the plans," Aasland said of Equinor.

An Equinor spokesperson confirmed the company remains on track to submit a development plan in 2022. The company said late last year that Wisting could cost some 75 billion Norwegian crowns to develop.

The Eldfisk North plan is meanwhile subject to customary approvals from Norwegian authorities.

"We are going to process the development plan as fast as possible," Aasland said.

Ekofisk is operated by ConocoPhillips, which holds a 35.1% stake, while TotalEnergies owns 39.9%, Vaar Energi 12.4%, Equinor 7.6%, and Petoro 5%.

Norway is western Europe's largest oil and gas producer, pumping around four million barrels of oil equivalent per day, but some of its major fields face depletion in the coming decade.

($1 = 9.5506 Norwegian crowns)


(Reporting by Nerijus Adomaitis and Nora Buli; Editing by Terje Solsvik, Kirsten Donovan)

Click here to read the full article from Reuters.

Copyright 2024 Thomson Reuters. Click for restrictions.

Comments and Discussion

There are no comments yet.

Add a Comment

Please log in or register to participate in comments and discussions.


Inspectioneering Journal

Explore over 20 years of articles written by our team of subject matter experts.

Company Directory

Find relevant products, services, and technologies.

Training Solutions

Improve your skills in key mechanical integrity subjects.

Case Studies

Learn from the experience of others in the industry.

Integripedia

Inspectioneering's index of mechanical integrity topics – built by you.

Industry News

Stay up-to-date with the latest inspection and asset integrity management news.

Blog

Read short articles and insights authored by industry experts.

Expert Interviews

Inspectioneering's archive of interviews with industry subject matter experts.

Event Calendar

Find upcoming conferences, training sessions, online events, and more.

Downloads

Downloadable eBooks, Asset Intelligence Reports, checklists, white papers, and more.

Videos & Webinars

Watch educational and informative videos directly related to your profession.

Acronyms

Commonly used asset integrity management and inspection acronyms.