Norway’s Equinor said it has obtained approval from the Ministry of Petroleum and Energy for the NOK 7.8 billion (US$915.6 million) plan for development and operation (PDO) for the Troll Phase 3 development.
The investment will help extend the productive life of the Troll field beyond 2050, Equinor said in a statement.
“With a break-even of less than US$10 per barrel, Troll Phase 3 is one of the most profitable and resilient projects ever in our company,” said Torger Rød, Equinor’s senior vice president for project management. “Thanks to the PDO approval Equinor and its partners can now deliver another 2.2 billion barrels of oil equivalent from the field with a CO2 intensity of 0.1 kilo per barrel.”
Since it came on stream in 1995, the Troll field has generated an estimated NOK 1400 billion, i.e. NOK 175 million per day, generating an important value for Norway.
“Equinor will work closely with partners and suppliers planning start-up of the field in the first half of 2021,” said 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,” said Gunnar Nakken, Equinor’s senior vice president for Operations West.
“Troll is the biggest gas producer on the NCS, meeting 7-8 per cent 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,” said Nakken.
The development of Troll phase 3 is also important for Norwegian supply industry. About 70 per cent of the value creation will take place in Norway.
The partnership has awarded contracts within marine installations and subsea facilities totalling an estimated NOK 950 million to the companies Nexans, Deep Ocean, IKM, Allseas and Marubeni. In addition, the partnership has awarded contracts worth approximately NOK 2 billion for subsea facilities and the construction of a new processing module on the Troll A platform to Aker Solutions.
Equinor has a 30.58 per cent interest and operatorship in Troll, Petoro owns 56 per cent, Norske Shell has an 8.10 per cent stake, Total E&P Norge has 3.69 per cent and ConocoPhillips Skandinavia holds 1.62 per cent.