SLB bags major contract for Troll Field Phase 3 development with Equinor

SLB (NYSE: SLB), through its OneSubsea joint venture, has been awarded a significant contract by Equinor for the second stage of Phase 3 of the Troll project in the North Sea, offshore Norway. This contract is part of a long-standing collaborative framework with Equinor, underlining SLB OneSubsea‘s robust partnership and its strategic role in accelerating subsea production systems compliant with NCS2017+ standards.

The focus of this stage in the Troll project is to fast-track the production of approximately 55 billion standard cubic meters of gas from the reservoir, effectively utilizing the subsea tieback to existing infrastructure. This ambitious endeavor is set to enhance the delivery of gas significantly, which is crucial given that the annual export volume from Troll corresponds to about 8% of the European Union’s gas consumption.

Comprehensive Scope of the Contract

Under the renewed contract, SLB OneSubsea will deliver a range of cutting-edge subsea equipment and technologies. The scope of work includes nine standard NCS2017+ vertical trees featuring wellheads, tubing hangers, subsea control modules, compact bridge modules with wet gas flow meters, two 4-slot templates, top-side controls integration, and two umbilicals. These components are crucial for maintaining the high efficiency and reliability required in the challenging conditions of the North Sea.

SLB and Equinor Advance North Sea Gas Production with Significant New Contract

Strategic Importance of the Troll Field

The Troll field, situated in the northern part of the North Sea and operated by Equinor Energy AS, remains Norway’s largest gas producer and holds significant reserves yet to be tapped. After over two decades of production, about 65% of its gas is still in the ground, showcasing its critical role in Europe’s energy landscape. The field’s production is also equivalent to roughly three times the annual Norwegian hydropower production, emphasizing its substantial contribution to the region’s energy mix.

Partnerships and Future Prospects

The collaborative frame agreement with Equinor, initiated in 2017, has been a cornerstone for joint value creation between SLB OneSubsea and Equinor. Mads Hjelmeland, CEO of SLB OneSubsea, highlighted the importance of the partnership, stating, “We deeply appreciate our long-standing relationship with Equinor, and we look forward to continuing our collaboration on the Troll field. This frame agreement is and has been an important conduit for joint value creation, supporting the transparency, teamwork, and collaborative solutions necessary to unlock maximum value from our NCS projects together.”

The partnership also includes significant stakeholders such as Petoro AS, AS Norske Shell, TotalEnergies EP Norge AS, and ConocoPhillips Skandinavia AS, each playing a crucial role in the phased development of this vast natural resource.

Expert Opinion on Energy Sector Collaborations

The continued investment and collaborative efforts in projects like Troll Phase 3 are indicative of the ongoing commitment by major energy companies to secure and enhance Europe’s energy supply. Such projects not only support regional energy needs but also drive technological advancements and economic benefits across the supply chain.