Equinor’s Strategic Move: Eirin Field Development and Ownership Equilibrium

Equinor’s Strategic Move: Eirin Field Development and Ownership Equilibrium

(IN BRIEF) Equinor has announced the sale of 19.5% interests in production licenses PL 048E, home to the Eirin field, and PL 1201 to PGNiG Upstream Norway AS (PGNiG), effectively balancing ownership with the Gina Krog field. The approval of the plan for development and operation (PDO) for Eirin in January 2024 paves the way for its development as a subsea facility linked to the Gina Krog platform, with the subsea template currently under construction in Egersund and set for installation in the summer of 2024. Camilla Salthe, Equinor’s senior vice president for late-life fields, emphasized the strategic significance of balanced partnerships in optimizing production decisions and enhancing value creation in the region. The move also aligns with efforts toward electrifying the platform, extending the Gina Krog field’s lifespan and promoting low-emission gas supply to Europe. Furthermore, Production license PL 1201, awarded in this year’s APA, offers potential synergies with Eirin’s infrastructure for any future discoveries, further bolstering the strategic alliance. The effective date for the transfers is set for January 1, 2024, pending ministry approval to finalize the transaction.

(PRESS RELEASE) STAVANGER, 5-June-2024 — /EuropaWire/ — In a strategic move, Equinor has announced the divestment of a 19.5% stake in production licenses PL 048E and PL 1201 to PGNiG Upstream Norway AS (PGNiG). This transaction, aimed at achieving equilibrium between Equinor and PGNiG’s ownership in these licenses, mirrors their partnership in the Gina Krog field.

The green signal for the development and operation plan (PDO) for the Eirin field was granted in January 2024. Eirin’s development will take the form of a subsea facility linked to the Gina Krog platform. The construction of the subsea template is well underway in Egersund, with plans for installation slated for the summer of 2024.

Camilla Salthe, Equinor’s senior vice president for late-life fields, emphasized the significance of balanced partnerships in streamlining decision-making processes across licenses to optimize production and bolster value creation. “Together with the electrification of the platform, the Eirin development will extend the lifetime of the Gina Krog field, contributing to low-emission gas supply to Europe from production and transport,” remarked Salthe.

Additionally, Production License PL 1201, secured in the recent Awards in Predefined Areas (APA), holds promise for potential discoveries that could leverage Eirin’s infrastructure, offering opportunities for tie-back to the Gina Krog platform. The economic effective date for the transfers is set for January 1, 2024, contingent upon ministry approval, marking a significant milestone in the transaction’s closure.

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SOURCE: Equinor ASA