Equinor Energy AS, Var Energi AS, LOTOS Exploration and Production Norge AS and KUFPEC Norway AS have made an investment decision to partially electrify the Sleipner field center offshore Norway and have updated their development and operation plan accordingly, Equinor reported Tuesday.
“Today, we are pleased to submit development plans for Sleipner electrification that will provide both ripple effects and major new emission cuts on the Norwegian continental shelf (NCS),” Anders Opedal, Equinor’s executive vice president for technology projects and drilling, remarked in a written statement emailed to Rigzone. “This investment will contribute to further develop the NCS toward the goal of zero greenhouse gas emissions in 2050.”
According to Equinor, using gas turbines to generate electricity on offshore installations accounts for one-quarter of Norway’s carbon dioxide (CO2) and nitrogen oxide emissions. The company explained that electrification entails laying cables from the mainland to offshore structures, allowing offshore facilities to receive a portion of their electricity from shore-based power stations.
The Sleipner field center will receive shore-based electricity via a new, 17.4-mile (28-kilometer) power cable from the Gina Krog platform, Equinor continued. The company noted that Gina Krog will link to the Johan Sverdrup platform in the Utsira High area via a 38.5-mile (62 kilometers) of high-voltage cable. This illustration supplied by Equinor shows the configuration of the platforms. Onsite gas turbines will still provide power when needed, Equinor added.
Arne Sigve Nylund, Equinor’s executive vice president for development and production in Norway, commented that more than 20 million tonnes of CO2 have been captured, injected and stored at Sleipner over the past 24 years.
“Therefore, it is extremely gratifying that the partners in the Sleipner license have decided to further develop the field in line with our ambitious plans to reduce greenhouse gas emissions on the NCS,” he stated.
Equinor also stated that the service company Aibel has won the engineering, procurement, construction, installation and commissioning (EPCIC) contracts to electrify Sleipner as well as Gina Krog. Moreover, it noted that cable supplier NKT has been contracted to produce and lay the power cables. NKT has already laid the cable from the Johan Sverdrup to Gina Krug fields, Equinor added.
In a separate written statement Tuesday, Aibel noted that its approximately NOK 400 million (US$41.1 million) Sleipner contract – subject to final regulatory approval of the amended development and operation plan – will bring an estimated 170 full-time equivalent jobs over two years to its office in Stavanger and yard in Haugesund. It added that equipment procurement from subcontractors will represent approximately NOK 150 million (US$16.2 million).
Aibel noted the roughly NOK 160 million (US$17.3 million) Gina Krog EPCIC contract should generate approximately 60 full-time equivalent jobs over 1.5 years in Stavanger and Haugesund.
“Again, we are proud to gain the trust of Equinor to contribute to the transformation to cleaner and more sustainable operation on the Norwegian continental shelf,” stated Aibel President and CEO Mads Andersen. “We have a lot of expertise and experience to draw on in order to ensure good deliveries in this area.”
Sleipner and Gina Krog should be linked to onshore power via the Utsira High area by the end of 2022, Aibel concluded.
In December of last year, consultancy Rystad Energy predicted that 40 percent of Norway’s offshore oil and gas production will come from electrified platforms by 2025.
To contact the author, email mveazey@rigzone.com.
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