Equinor Reports Progress on Key Norwegian Energy Projects Despite Rising Costs and Delays

Equinor Reports Progress on Key Norwegian Energy Projects Despite Rising Costs and Delays

(IN BRIEF) Equinor provided updates on 13 key development projects in Norway, which together represent a total investment of 198 billion kroner. The projects, aimed at ensuring a secure energy supply to Europe, include the Johan Castberg and Oseberg gas compression projects, both of which have seen cost increases of over 20% due to currency fluctuations and project delays. Johan Castberg is on track for startup by the end of 2024, while the Oseberg project has been delayed to 2027. The Snøhvit Future project also experienced cost increases due to design changes for safety reasons. Overall, Equinor continues to drive significant progress in Norway’s energy infrastructure, contributing to the country’s economic and energy goals.

(PRESS RELEASE) STAVANGER, 7-Oct-2024 — /EuropaWire/ — Equinor, the operator of 19 development projects in Norway, provided updates on the status of key projects in the 2025 National Budget, as detailed by the Ministry of Energy. The 13 highlighted projects represent a total investment of 198 billion kroner, contributing to Norway’s energy sector and Europe’s oil and gas supply. In 2023 alone, these developments generated high levels of activity and contributed 25 billion kroner to the Norwegian supplier industry. Six projects were successfully completed during the year.

Despite overall progress, Equinor has reported a cost increase of 6.5 billion 2024-NOK, approximately 3%, over the past year due to currency fluctuations and project complexities. Two major projects, Johan Castberg and Oseberg gas compression, have seen cost increases of over 20% since their original development plans.

The Johan Castberg floating production vessel is now anchored at its field and is on track for startup by the end of the year, though costs have risen by 2.2 billion NOK since last year, partly due to extended stays at Aker Solutions and currency effects. Meanwhile, the Oseberg project, which involves partial electrification and gas compression, has faced delays due to transformer delivery issues and increased project complexity, with commissioning now postponed to 2027.

The Snøhvit Future project, focused on the onshore compression and electrification of the Hammerfest LNG facility, has also experienced a cost increase of 1.9 billion NOK, with currency fluctuations and safety-related design changes contributing to the rise.

Equinor’s project development head, Trond Bokn, emphasized the company’s commitment to profitable projects that support the long-term energy supply to Europe.

Projects included in the National Budget overview:

• Breidablikk
• Gina Krog alternative oil export
• Halten Øst
• Johan Castberg
• Kristin Sør phase 1
• Oseberg gas phase 2 and power from shore
• Sleipner power from shore
• Troll Vest electrification
• Irpa
• Verdande
• Snøhvit Future
• Njord Electrification
• Eirin

Completed projects:

• Breidablikk
• Sleipner power from shore
• Kristin Sør phase 1
• Troll Vest electrification
• Gina Krog alternative oil export
• Northern Lights

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SOURCE: Equinor ASA