Equinor and its partners have secured approval from the Norwegian Ministry of Petroleum and Energy for the plan for development and operation (PDO) for the NOK19bn ($2.3bn) Snorre Expansion Project.
The Snorre expansion project is aimed at increasing recovery from the Snorre field located in blocks 34/4 and 34/7 of the Tampen area in the Norwegian North Sea, by almost 200 million barrels and extend the field life beyond 2040.
Said to be one of the largest projects for improved recovery on the Norwegian continental shelf, the Snorre Expansion Project involves a subsea development, upgrading of the Snorre A installation, increased gas injection and gas import for injection.
Equinor Technology, Projects and Drilling executive vice-president Margareth Øvrum said: “Equinor has worked closely with partners and suppliers to realise the development. I am pleased that the plan for development and operation has been approved.”
The recovery rate of the Snorre field, which was originally estimated to produce until 2011–2014, has been increased from 46% to 51% and life has been extended beyond 2040.
Equinor Norway development and production executive vice-president Arne Sigve Nylund said: “The project will provide jobs in many places along the Norwegian coast and operation of the Snorre field for 25 more years.”
The Snorre Expansion Project, which is scheduled to start production in 2021, is planned to be operated and maintained by the existing Snorre organisation in Stavanger whereas the supplies will still be handled by Fjordbase in Florø.
Equinor Petroleum operates the field with 33.27% stake while other partners include Petoro with 30% interest, ExxonMobil Exploration and Production Norway with 17.44% stake, Idemitsu Petroleum Norge with 9.6% stake, DEA Norge with 8.57% interest and Point Resources with 1.1% stake.
The partners are planning to awarded contracts, subject to final regulatory approval, for the subsea production system to TechnipFMC, fabrication and installation of the pipeline bundle system to Subsea 7, Snorre A modifications to Aibel, drilling and well operations to Transocean and marine installations to Deep Ocean.