Norway Invests in Asgard Extension
Norwegian operator Equinor has given the green light to the nearly Nkr 1.4bn ($165mn) Asgard low-pressure project, it said March 4. It will add about a fifth to the oil and gas field's total output, it estimates, and production is due in 2023, about 15 years after first gas.
“We’re pleased that the Asgard owners have given their go-ahead for the low-pressure project. The project will increase production from the current Smorbukk wells and contribute to achieve planned production from the field. We’re also awarding a contract to Aker Solutions which will provide valuable activity and help maintain jobs in a difficult time,” the state-controlled company said.
The field, in the Norwegian Sea, started producing in 1999 and the transition to low-pressure production is important to secure improved recovery from the field. The selected concept is a modification of the platform to reduce inlet pressure by replacing the reinjection compressors and rebuilding parts of the processing facility.
“We can still produce 400-500mn barrels of oil equivalent from the field. This means value creation in the order of Nkr150-200bn. The current recovery rate for the field is almost 50%, but our ambition is to extract 60% of the hydrocarbons in the reservoirs before the field will have to be shut down,” Equinor said.
Aker Solutions won a front-end engineering and design (Feed) contract in December 2019 for modification work in connection with the low-pressure project. The contract has now been expanded into an engineering, procurement, construction, and installation (EPCI) contract.
The EPCI contract is valued at around Nkr 800mn and the work will start immediately. It is planned to continue through 2024.
Gas is piped through Asgard Transport to the processing plant at Karsto, north of Stavanger. Overall, Asgard has delivered more than 2.8bn barrels of oil equivalent, with a gross value of more than Nkr 1 trillion. Partners in the Asgard licence are Equinor with 34.57%; Norway's direct financial interest (Petoro) with 35.69%; Eni-led joint venture Var Energi with 22.06% and French Total with 7.68%.