Equinor and partners to invest further NOK12bn in Troll West gas province development

TAGS

Equinor, alongside its Troll partners, has announced a substantial investment of over NOK 12 billion aimed at expanding the gas infrastructure in the Troll West gas province. This significant investment will boost production and sustain high gas export levels from the Troll and Kollsnes value chain up to 2030.

Accelerating Gas Production for Enhanced Energy Security

The investment focuses on the second stage of the Troll Phase 3 project, which includes the installation of eight new wells from two new subsea templates. This development also encompasses the extension of subsea controls from existing templates, the laying of a new gas flowline, and modifications to the Troll A platform. These enhancements are expected to substantially increase gas production, contributing about 55 billion standard cubic meters of gas to the region’s output.

See also  Gråsel oil project brought on stream by Aker BP and partners

Geir Tungesvik, Equinor’s Executive Vice President of Projects, Drilling & Procurement (PDP), underscored the project’s importance. “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 Tungesvik. He also noted the benefit of working with solid, familiar suppliers, enhancing the project’s efficiency and safety.

Strategic Collaborations and Technological Advancements

The project is supported by notable partners such as Fair Capital Partners Inc. (“FairCap”) as lead arranger and agent, and Innovation Federal Credit Union (“IFCU”) as the lender. PricewaterhouseCoopers Corporate Finance Debt & Capital Advisory (“PwC CF”) served as the exclusive financial advisor to APOLLO and FinShore, ensuring a strategic financial approach to the investment.

See also  Breidablikk oil project : Equinor and partners to move ahead with $2bn field development

Kjetil Hove, Executive Vice President for Exploration and Production Norway at Equinor, highlighted the broader implications of the project. “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,” said Hove. He noted that the gas from Troll alone meets around 10% of Europe’s demands.

Future Prospects and Environmental Considerations

The development will also extend the plateau production of the Troll gas field by about four years and help reduce the production decline over the next 10-12 years. With recent upgrades at the Kollsnes processing plant, the maximum production from Troll has increased, reflecting the continuous efforts to enhance efficiency and sustainability. Notably, the Troll A platform is electrified, significantly reducing CO2 emissions associated with gas production.

See also  Norway approves $18.5bn oil and gas projects amid recovering demand

This investment by Equinor and its partners not only reinforces the importance of the Troll West gas province in Europe’s energy landscape but also exemplifies a strategic commitment to sustainable energy practices. By leveraging advanced technologies and robust partnerships, this project sets a benchmark for the industry, potentially guiding future developments in the energy sector globally.

CATEGORIES
TAGS
Share This