Johan Castberg is situated approximately 100 km north of the Snøhvit-field in the Barents Sea. The concept was chosen in 2017.
Equinor is on track to maintain profitable production from the NCS at current level towards 2030. After 2030 the NCS will enter a more mature phase. It is therefore necessary to introduce new measures to tackle the future challenges of declining production from the big fields, ageing installations and the need for reduced CO2 emissions.
Over the past years we have set ourselves tough targets on the NCS. This has paid off. We have improved operational efficiency, increased production, reduced CO2 emissions and matured a highly profitable project portfolio. This is the result of good dialogue with the authorities and good collaboration with our suppliers and employees. The NCS still holds a lot of potential, however securing value creation and thousands of jobs for the decades to come is not an easy task. The changes needed will be bigger than ever before and are necessary as we continue to develop as a broad energy company.
Our new ambition for the NCS is this: transforming the NCS for sustainable value creation for many decades. There are still substantial remaining oil and gas resources on the NCS. Some of these resources are near existing infrastructure, while other resources are difficult to find or located in smaller deposits requiring further technology development to become profitable.
Active exploration on the NCS is vital to succeed in revitalising the continental shelf. We are making two important moves: We have developed a strategy for more gas exploration. We will also test new ideas in some prospects every year. The likelihood of discovery in these wells will be lower than in other targets, but we see it as necessary to regularly test a few of what we call “game changing wells” in order to explore the NCS to its full potential.
Over the coming decades Equinor plans to drill up to 3000 production and exploration wells. This is almost as many wells as the company has drilled since it was established almost 50 years ago. This is an important measure to extract more profitable barrels from the fields we operate. We aim to achieve an average recovery rate of 60 and 85 percent respectively on our oil and gas fields.
Up to 2020 Equinor expects to invest NOK 1-2 billion in digital technology. This year Equinor is opening two new digital support centres that will help increase NCS production. Innovation, digitalisation and use of new technology will be important tools to be able to recover resources that are not profitable today. Rapid development in areas such as robotics, drones and use of 3D will ensure safer and more efficient field developments going forward.
Our headquarters are located in Stavanger with group activities also located in Oslo and Bergen.
We have more than 40 projects in the implementation phase
We intend to maintain production at current levels until 2030
Our products are marketed and sold on the global market, and our production has made Norway one of the world's leading oil and gas exporters. Our onshore facilities in Norway include activities in crude oil reception, gas processing, refining and methanol production. We also have operational responsibility for the world's most extensive subsea pipeline system for the transportation of gas.
Equinor operates the facilities for bringing gas onshore and processing it, which provides a significant number of jobs:
In addition, we have seven supply bases along the coast that provide important knock-on effects in their local communities.
We market and sell our own gas in addition to the government's SDFI volumes, in total around 70 per cent of all gas from the Norwegian continental shelf. This makes us the second-largest exporter of gas to Europe, where we have a market share of around 15 per cent.