PDO for Snorre Expansion Project approved

July 5, 2018 12:01 CEST
Snorre Expansion field illustration
Snorre Expansion Project field illustration

The Ministry of Petroleum and Energy has approved the plan for development and operation (PDO) for the Snorre Expansion Project. Investments of just above NOK 19 billion (2017) will increase recovery from the Snorre field by almost 200 million barrels and extend the field life beyond 2040.

Snorre Expansion Project is the largest project for improved recovery on the Norwegian continental shelf and provides valuable production and activity benefitting Equinor, partners and society. The project involves a comprehensive subsea development, upgrading of the Snorre A installation, increased gas injection and gas import for injection.

“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,” says Margareth Øvrum, Equinor’s executive vice president for Technology, Projects and Drilling.

The Snorre field was originally estimated to produce until 2011–2014. Now the field life has been extended beyond 2040, and the recovery rate increases from 46 to 51 per cent.

Handover of Snorre Expansion project PDO
The PDO for Snorre Expansion Project was handed over as a Christmas gift to Terje Søviknes (right) in December 2017, minister of Petroleum and Energy. From the left: Mette Halvorsen Ottøy, Margareth Øvrum and Bjarne Bakken. (Photo: Arne Reidar Mortensen)

Scheduled to start production in 2021, the Snorre Expansion Project will be operated and maintained by the existing Snorre organisation in Stavanger. Supplies will still be handled by Fjordbase in Florø.

Equinor estimates that around 80% of the investments, which are just above NOK 19 billion, will include Norwegian companies. Based on analyses made by Agenda Kaupang approximately 23,000 man-years will be carried out in Norway in the project phase.

Subject to final regulatory approval, the partners have awarded contracts 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.

“The project will provide jobs in many places along the Norwegian coast and operation of the Snorre field for 25 more years,” says Arne Sigve Nylund, Equinor’s executive vice president for Development and Production Norway.

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Facts about the development plan

  • 24 new wells, 12 for production and 12 for injection
  • A total of six new subsea templates for production and alternating water/gas injection
  • Pipelines and umbilicals between the subsea templates and Snorre A
  • Upgrading of Snorre A to be able to receive production from the subsea templates and supply water and gas for injection to the subsea templates.

Facts about the Snorre field

  • The Snorre field was discovered in 1979 and came on stream in 1992.
  • The field is in the Tampen area in the northern part of the North Sea. Water depth is between 300 and 380 metres.
  • A giant in the North Sea, Snorre is one of the fields with the largest remaining reserves of Equinor’s oil producing fields on the Norwegian continental shelf.
  • When the PDO was submitted, estimated production was 750 million barrels of oil. Up to now, the Snorre field has produced 1.4 billion barrels of oil.
  • The Snorre field was originally estimated to last until 2011–2014. Now the field is expected to produce beyond 2040.
  • Partners:  Equinor Petroleum AS (operator) 33.27%, Petoro AS 30%, ExxonMobil Exploration and Production Norway AS 17.44%, Idemitsu Petroleum Norge AS 9.6%, DEA Norge AS 8.57% and Point Resources AS 1.1%.