Equinor receives green light for a uniquely profitable project
NORWAY -- The Ministry of Petroleum and Energy has approved the plan for development and operation (PDO) of the Troll Phase 3 development. Capital expenditures of $918.5 million (NOK 7.8 billion) will help extend the productive life of the Troll field beyond 2050.
A unique oil and gas field globally Troll generates highly important to value for the Norwegian society. Since it came on stream in 1995 the field has generated an estimated NOK 1,400 billion, i.e. $20.6 million (NOK 175 million) per day.
“With a break-even of less than $10/bbl, Troll Phase 3 is one of the most profitable and resilient projects ever in our company. Thanks to the PDO approval Equinor and its partners can now deliver another 2.2 Bboe from the field with a CO2 intensity of 0.1 kilo/bbl,” says Torger Rød, Equinor’s senior vice president for project management.
“Equinor will work closely with partners and suppliers planning start-up of the field in the first half of 2021,” says Rød.
“This adds a new chapter to the amazing Troll story. The field has an important part in our plans to transform the Norwegian continental shelf for sustainable value creation for several decades,” says Gunnar Nakken, Equinor’s senior V.P. operations west.
“Troll is the biggest gas producer on the NCS, meeting 7% to 8% of Europe’s total daily gas consumption. We will deliver safe, profitable and carbon-efficient energy from Troll that helps reduce coal consumption and reduce CO2 emissions in Europe with a long-term perspective beyond 2050,” says Nakken.
The development of Troll phase 3 is also important for Norwegian supply industry. About 70% of the value creation will take place in Norway.
The partnership has awarded contracts within marine installations and subsea facilities totalling an estimated $111 million (NOK 950 million) to the companies Nexans, Deep Ocean, IKM, Allseas and Marubeni. In addition, the partnership has awarded contracts worth approximately $235 million (NOK 2 billion) for subsea facilities and the construction of a new processing module on the Troll A platform to Aker Solutions.
Troll partners: Equinor (30.58% - operator), Petoro (56%), Norske Shell (8.10%), Total E&P Norge (3.69%), ConocoPhillips Skandinavia (1.62%)