Major Investment: Equinor and Ithaca Energy Greenlight $3.8 Billion Rosebank Project on UKCS

Major Investment: Equinor and Ithaca Energy Greenlight $3.8 Billion Rosebank Project on UKCS

(IN BRIEF) Equinor and Ithaca Energy have committed $3.8 billion to Phase 1 of the Rosebank development in the UK North Sea. The project aims to recover around 245 million barrels of oil from the Rosebank field, located approximately 130 kilometers northwest of Shetland. It will utilize subsea wells tied to a Floating Production Storage and Offloading vessel (FPSO), with operations set to start in 2026-2027. The development aligns with the North Sea Transition Deal, emphasizing reduced emissions. Equinor plans to explore shore-based power to further reduce carbon emissions. The project is expected to create jobs and generate significant investment in the UK.

(PRESS RELEASE) STAVANGER, 27-Sep-2023 — /EuropaWire/ —  Equinor ASA (OSE:EQNR, NYSE:EQNR), an oil, gas, wind and solar energy company active in more than 30 markets globally, and Ithaca Energy have jointly announced the final investment decision for Phase 1 of the Rosebank development on the UK Continental Shelf (UKCS), with an investment of $3.8 billion. The North Sea Transition Authority (NSTA) granted consent for the project on September 27th.

“Developing the Rosebank field will allow us to grow our position as a broad energy partner to the UK, while optimising our oil and gas portfolio, and increasing energy supply in Europe. Rosebank provides an opportunity to develop a field within the UK Continental Shelf which will bring significant benefits to Scotland and the wider UK,” says Geir Tungesvik, executive vice president Projects, Drilling and Procurement at Equinor.

The Rosebank field is situated approximately 130 kilometers northwest of Shetland in 1,100 meters of water. It holds around 300 million barrels of oil, with Phase 1 focusing on recovering an estimated 245 million barrels. The development involves subsea wells connected to a redeployed Floating Production Storage and Offloading vessel (FPSO), with operations scheduled to commence in 2026-2027. Oil will be transported via shuttle tankers to refineries, while gas will be exported through the West of Shetland Pipeline to mainland Scotland.

The Rosebank project aligns with the North Sea Transition Deal, aiming to meet any remaining demand for oil and gas with minimal emissions. The FPSO is designed for electrification, and Equinor is collaborating with government and industry to explore a regional solution for shore-based power to reduce carbon emissions from production.

According to Wood Mackenzie and Voar Energy, Rosebank is expected to generate £8.1 billion of total direct investment throughout its field life, with 78% likely to be invested in UK-based businesses. During the construction peak, the project is anticipated to support around 1,600 jobs, with approximately 450 UK-based jobs sustained during the field’s lifespan.

“We know that the world needs to transition to new, cleaner energy systems and our broad energy investments into the UK support this. And while we do this there is going to be a continued need for oil and gas, which currently meets 76% of the UK’s energy needs. Our decision to progress the Rosebank development is the result of work and collaboration by our employees, partners, government, regulators, and other stakeholders to ensure that this development is able to help meet this ongoing need, with the lowest carbon footprint possible,” says Arne Gürtner, senior vice president Upstream at Equinor in the UK.

TechnipFMC secured an iEPCI™ contract worth around $500 million for subsea production systems, umbilicals, risers, and flowlines, with over half of the value generated from local activities across the UK. Odfjell Drilling received a rig contract valued at $328 million for the Deepsea Atlantic mobile rig, scheduled to start drilling in the second quarter of 2025, with additional single-well options included. Altera secured a bareboat charter and operations and maintenance contract for the Petrojarl Knarr FPSO.

Equinor has a 40-year history as an energy partner in the UK, providing a stable supply of oil and gas, developing the offshore wind industry, and working on decarbonization solutions. Equinor currently supplies 29% of the UK’s gas and 15% of its oil. Plans are underway to invest over £10 billion in the UK by 2030, creating more than 5,000 jobs, with a focus on renewables, CO2 capture and storage, and hydrogen alongside oil and gas investments.

The Rosebank development

Media contact:

Sissel Rinde
Vice president Media relations
Corporate affairs
sisr@equinor.com
+47 412 60 584

SOURCE: Equinor ASA