As oil & gas still runs Norway’s energy show, Equinor unveils up to $66 billion boost for hydrocarbons by 2035 alongside Barents Sea’s new area-wide emergency preparedness plan

The Norwegian state-owned energy giant Equinor has set its cap on bolstering its hydrocarbon arsenal by injecting tens of billions of dollars over the next decade into the oil and gas developments on the Norwegian Continental Shelf (NCS). The company also plans to set up and operate a new area-wide emergency preparedness solution for the southwestern Barents Sea, enriching it with new resources, expertise, and capabilities while enhancing industry collaboration.

Equinor’s new investment plan, which envisions $5.7 – $6.6 billion being poured each year into the Norwegian oil and gas arena by 2035, comes after the Norwegian Offshore Directorate (NOD) warned that over $1.42 trillion (NOK 15 trillion) was at risk of being lost if Norway did nothing to ramp up its search for remaining hydrocarbon resources on the NCS and employ new technology to increase production levels.

The firm’s annual investment program, which could enable the Norwegian oil and gas industry to get a hold of more than $66 billion by 2035 from the state-owned player, is part of the raft of measures being taken to keep the hydrocarbon production levels high off the coast of Norway, given the rise in demand. Equinor wants to maintain production of approximately 1.2 million barrels per day over the next ten years.

As a result, the Norwegian energy giant’s hydrocarbon exploration program for the period encompasses 20-30 wells being drilled every year to ensure stable production and avoid the scenario where the equivalent of nearly an entire government pension fund would be lost, which is a possibility the NOD recently raised to encourage exploration activity and technological development.

Meanwhile, Equinor’s solution for the Barents Sea area is expected to strengthen safety and emergency preparedness through a collaboration with Vår Energi, operator of Goliat. The partnership, initiated by the Barents Sea Operation Cooperation (BASOP), has received the blessing of the Norwegian Ocean Industry Authority, thus, the establishment of the area-wide emergency preparedness system will be operational from January 1, 2025.

Grete B. Haaland, Equinor’s Senior Vice President for Exploration & Production North, commented:  “Safety is our number one priority, we must have a good emergency preparedness system in place wherever we operate. Together with the other operators, the authorities and the supply industry, we have through fifty years developed the preparedness for the fields in the North Sea and in the Norwegian Sea.

“With Johan Castberg coming on stream towards the end of the year and increased activity in the north, we are now establishing an area-wide emergency preparedness system in the Barents Sea.”

While the emergency preparedness in the Barents Sea is already perceived to be in good shape thanks to the solution Vår Energi established for the Goliat field, the new area-wide emergency preparedness system is anticipated to fortify it further by fostering interaction and sharing of common resources. The doors to this endeavor may also be opened to other companies.

“This will help improve safety and strengthened emergency preparedness for the fisheries and other users of the sea in this area. We will, among other things, build a new emergency response and rescue vessel (ERRV) that will make a difference. We have worked closely with the fishing fleet on emergency preparedness in the Barents Sea since the start-up of Goliat, where we are a licensee,” highlighted Haaland.

The Equinor- Vår Energi area-wide emergency preparedness system for the southwestern Barents Sea puts several tools into play to reach its objectives, including one all weather search and rescue (AWSAR) helicopter of the type S-92, stationed at Hammerfest Airport and three emergency response and rescue vessels with standing oil spill response capabilities (NOFO standard).

One ship is expected to be dedicated to Goliat, another to Johan Castberg, alongside one joint emergency response and rescue vessel. Furthermore, the Norwegian state-owned energy giant intends to build a new emergency response and rescue vessel equipped with inspection, maintenance, and repair (IMR) capabilities to contribute to safety, short response times, and inspections.

The duo is committed to faster response times for SAR and improved medical preparedness in the area in the long term. Aside from continuous ocean and ice monitoring, there are plans to monitor and follow up from Equinor’s operations center in Bergen with physical infrastructure, digital systems, and round-the-clock staffing.

Moreover, the partners are bent on achieving increased interaction, central coordination, and mutual agreement as part of the area-wide emergency preparedness that could mobilize the NOFO base in Hammerfest for platform supply vessels (PSVs) and not just oil spill response equipment.

While Equinor is preparing to kick off production from the Johan Castberg field in 2024, Vår Energi has changed its timeline for the first oil from the Balder X life extension project by moving the start-up to the second quarter of 2025. 

Recently, the Norwegian state-owned firm started production from the first well in its planned five-well project on the Norwegian Continental Shelf, developed as a tie-back to an existing offshore platform in the Norwegian Sea.

Equinor is working on several projects offshore Norway, including an all-electric one for which it picked SLB to deliver front-end engineering design (FEED) work while Ocean Installer is handling engineering, procurement, construction, and installation (EPCI) for the Troll Phase 3 – Stage 2 project.