Norway produced 122.9 million cubic meters (4.3 billion cubic feet) of oil equivalent in the first half (H1) of 2024, up 6.2 MMcm (219 MMcf) compared to the same period last year as natural gas output kept growing year-on-year in the six months running.The Nordic country, a key gas supplier for Europe, produced 340.2 MMcm (12 Bcm) per day of gas last month, maintaining a consistent year-over-year growth in monthly production in 2024.
June’s daily average for gas production exceeded the government forecast by 6.5 percent. The figure last month rose from 252.6 MMcmpd (8.9 Bcfpd) in June 2023 and 322.2 MMcmpd (11.4 Bcfpd) in the prior month, according to data released by the Norwegian Offshore Directorate.Norway sold 10.2 Bcm (360.2 Bcf) of gas June 2024, up from May 2024.Crude oil production totaled 1.7 million barrels per day (MMbpd) last month, about the same as the prior month and the comparable period in 2023. The crude figure exceeded the projection by 0.5 percent.
Overall liquid production in June totaled two MMbpd, also stable by both sequential and prior-year comparisons. The liquid sum for June topped the projection by 0.8 percent.Last year, Norway remained the European Union’s biggest supplier of natural gas accounting for 30 percent or 87.8 Bcm (three trillion cubic feet), mostly pipeline gas, according to the European Commission’s quarterly gas report released June 6, 2024. Norway has overtaken Russia since the latter’s invasion of Ukraine 2022.
New Projects
Norway expects to put several projects into production this year.Last month, Equinor ASA announced the startup of the Kristin South area in the Norwegian Sea, expecting to produce 58.2 million barrels of oil equivalent (MMboe) in the first phase of development.The initial phase consists of the Kristin Q and Lavrans discoveries, which are being developed as satellites to the already producing Kristin field. The plan for development and operation was submitted 2021 and approved 2022.
One well in the Lavrans field has been put online under the Kristin South project, through a new subsea template tied back to the Kristin field platform, Equinor ASA said in a statement July 8. Four more wells are planned as part of phase one of Kristin South, consisting of three in the Lavrans field and one in the Q-segment in the Kristin field. The Kristin well is planned to be drilled from an existing subsea template connected to a semisubmersible facility.
The estimated recovery in the first phase consists of 6.2 Bcm (219 Bcf) of natural gas and 1.9 MMcm (67.1 MMcf) of oil.Norway’s majority state-owned Equinor operates the project with a 54.82 percent stake through Equinor Energy AS. Petoro AS, also a local state-owned player, holds 22.52 percent, Vår Energi ASA owns 16.66 percent and TotalEnergies EP Norge AS has the remaining six percent.
On May 6 ConocoPhillips announced the startup Eldfisk Nord, which has a resource potential of 50–90 MMboe by the operator’s estimate. The Eldfisk field was discovered 1970. The development plan for the Eldfisk North project was approved December 2022. The Eldfisk North project has an estimated investment of NOK 13 billion ($1.2 billion), according to ConocoPhillips.
The project comprises nine producing wells, exploited through subsea templates. Located in Block 2/7 as part of the Greater Ekofisk Area, the project raises the recovery rate from the Ekofisk and Tor formations, according to the Norwegian Offshore Directorate.ConocoPhillips operates the field through ConocoPhillips Scandinavia AS with a stake of about 35.1 percent. The partners are TotalEnergies (about 39.9 percent), Vår Energi (about 12.4 percent), Sval Energi AS (about 7.6 percent) and Petoro (five percent).
On April 22, 2024, Aker BP ASA said it had started up the Hanz field on the Norwegian side of the North Sea. The subsea development, which has an estimated investment of nearly NOK 5 billion ($458.7 million), holds reserves of about 20 MMboe, according to 35 percent owner and operator Aker BP.Discovered 1997, Hanz is a tieback project under the development plan for the already-producing Ivar Aasen field, which sits 12 kilometers (7.5 miles) south.The other co-venturers are Equinor (50 percent) and Sval (15 percent).
Focus on Barents Sea
In the Norwegian Barents Sea, seen as key to maintaining Norway’s gas export relevance, three fields can start producing by the end of 2024, according to a press release by the Norwegian Offshore Directorate April 17.“Forecasts indicate that production on the Norwegian shelf will peak in 2025”, the Directorate said then.“Johan Castberg coming on stream is one of the contributing factors”, it said. The field is operated by Equinor with a 50 percent stake.
“Good infrastructure is the proven key to high and long-term value creation throughout the shelf”, the Directorate added. “This is why it is important that major new field developments contribute to good, comprehensive area solutions. This means that minor discoveries can be tied back, and it will also stimulate new exploration activity”.
“Wisting is the next major development in the Barents Sea that can contribute new infrastructure”, it said referring to another Equinor-operated field. “This is a strategically important project where the authorities expect the licensees to facilitate a good area solution.“Both Goliat, Johan Castberg, and most likely also Wisting, will eventually need gas offtake and the authorities are concerned with ensuring good coordination among companies and good joint solutions”.
The Directorate said at the time that Norway’s gas exports to Europe could be maintained at the current level through 2030 but that after the decade, deliveries could decline. “This is why more gas discoveries need to be developed”, it said. “Increased export capacity from the Barents Sea could be an important contribution.“Studies are underway on how to potentially expand export capacity from the Barents Sea”The Directorate expects eight to 10 exploration wells to be drilled in the Barents Sea this year.
Source:https://www.rigzone.com