Ithaca Energy, Equinor greenlight $3.8bn Rosebank field development

In a significant move, Ithaca Energy, in partnership with Equinor, the Operator, has officially greenlit Phase 1 of the Rosebank field development on the UK Continental Shelf, committing a substantial $3.8 billion to the venture. The North Sea Transition Authority (“NSTA”) has granted its consent for the field’s development, marking a pivotal moment in the energy industry. Ithaca Energy maintains a 20% working interest in the Rosebank project.

Rosebank Field: Unveiling a Massive Opportunity

Situated approximately 130 kilometers northwest of Shetland, the Rosebank field boasts an estimated 300 million barrels of recoverable oil across Phase 1 and 2, with Phase 1 alone targeting a staggering 245 million barrels. The development plan revolves around subsea wells connected to a repositioned Floating Production Storage and Offloading vessel (“FPSO”), and anticipates the commencement of production between 2026 and 2027. Rosebank’s output is set to exceed 21 MMSCF of natural gas daily, equivalent to the daily consumption of Aberdeen City.

A Greener Future for Rosebank Field

With sustainability at the forefront, the Rosebank development aligns seamlessly with the North Sea Transition Deal, featuring an electrification-ready FPSO design. Ithaca Energy and Equinor are actively collaborating with government bodies and industry stakeholders to establish a regional power-from-shore solution for Rosebank and neighboring fields, with the goal of minimizing carbon emissions during production.

Economic Impact and Job Creation

The Rosebank project is poised to inject a substantial £8.1 billion of total direct investment into the economy, with a remarkable 78% earmarked for UK-based enterprises. During the construction zenith, it is anticipated to support around 1,600 jobs, while approximately 450 UK-based positions will be sustained throughout the field’s operational lifespan.

Contracts Galore

Several key contracts have already been awarded for this ambitious undertaking:

• TechnipFMC has secured an integrated engineering, procurement, construction, and installation (iEPCI™) contract valued at $500 million, with a significant portion stemming from local activities within the UK. Aberdeen will serve as the primary hub for project management and engineering, and various UK sites will contribute to the endeavor.
• Odjfell Drilling has clinched a rig contract worth approximately $328 million, inclusive of options, with the Deepsea Atlantic mobile rig set to commence a seven-well drilling campaign in Q2 2025.
• Altera has secured a bareboat charter and an operations and maintenance contract related to the Petrojarl Knarr FPSO, which is destined for Rosebank under a firm contract spanning nine years, with the potential for extension up to 25 years.

Leadership Voices

Gilad Myerson, Executive Chairman of Ithaca Energy, expressed enthusiasm about the Rosebank development, emphasizing its potential to not only address domestic energy needs but also generate substantial economic impact and job opportunities.

Alan Bruce, Chief Executive Officer of Ithaca Energy, reaffirmed the company’s commitment to the UK North Sea and its partnership with Equinor, highlighting the project’s significance in terms of environmental responsibility and local support.

The Rosebank development is set to reshape the energy landscape, marking a remarkable stride towards sustainable energy production and economic growth in the UK.