More Norwegian gas for Europe as first segment of two-phase development comes online

Norwegian state-owned energy giant Equinor has kicked off production from the first chapter of a gas and condensate project off the coast of Norway, which is envisioned to encompass multiple discoveries developed in two phases. This development unlocks additional gas supplies for the European energy market. 

Two years after securing approval from Norwegian authorities, Equinor (69.5%, operator) began gas production at the Halten East project, a tie-in development in the Kristin-Åsgard area in the Norwegian Sea, where Vår Energi (24.6%) and Petoro (5.9%) are the firm’s partners. This development encapsulates six gas discoveries and flexibility for three prospects, utilizing existing infrastructure and processing capacity at Åsgard B.

Geir Tungesvik, Equinor’s Executive Vice President for Projects, Drilling, and Procurement, commented: “We are starting up Halten East at a time where piped gas from Norway is in high demand and important for energy security. In a challenging cost and inflation environment, the project has been delivered both on time and within our cost estimate.”

According to the operator, the estimated payback time for the project is one year. The company secured the green light in 2023 for modification work in connection with the development of Halten East and Smørbukk North, which came on stream in December 2025, at Åsgard B, which is a semi-submersible floating platform on the Åsgard field with processing facilities for gas treatment and stabilization of oil and condensates.

Located in the central part of the Norwegian Sea, in a water depth of 240-300 meters, the Åsgard field was discovered in 1981 and the development concept includes the Åsgard A production vessel, the Åsgard B semi-submersible platform and the Åsgard C storage vessel. The field has been producing oil since May 1999 and gas since October 2000.

The Åsgard facilities also receive oil and gas from seven different fields tied into the infrastructure at Åsgard B. The gas from the Åsgard field is routed by pipeline to Kårstø in Northern Rogaland County, where heavier components such as ethane, propane, butane, and naphtha are separated, and the dry gas is transported onward via the Europipe II pipeline to customers on the continent.

With gas from the first well, Gamma, on stream and additional wells slated to be brought online throughout this year to reach peak production in 2026, Equinor highlights that the Halten East project’s first phase consists of six wells from five discoveries, while the second phase is also in the pipeline and due to come online in 2029 to include a sidetrack and an additional three possible wells on the Norwegian Continental Shelf (NCS).

The Norwegian giant confirms that around 90% of the project’s investments have gone to suppliers in Norway, with the development phase of Halten East estimated to provide around 3,000 person-years of employment per year from 2022 to 2029. The total investment for the project is around NOK 9 billion (about $850.46 million) for both phases. With the project’s recoverable reserves estimated to be around 100 million barrels of oil equivalent, gas will be sent to Kårstø from Åsgard B to be exported to Europe via pipeline.

Kjetil Hove, Equinor’s Executive Vice President for Development and Production on the NCS, emphasized: “Halten East demonstrates the importance of area solutions and cooperation between licence owners and authorities to realise the full resource potential on the Norwegian continental shelf.

“Together, we can develop industrial solutions that will continue to deliver energy with low costs and low emissions. We have a large portfolio of projects that will connect discoveries to our producing hubs. Equinor expects to put over 30 such projects on stream at the NCS within 2035.”

After acquiring Sval Energi’s 11.8% share in the Halten East unit in November 2024, Equinor increased its ownership to 69.5%. The six discoveries within Halten East encompass Natalia, Sigrid, Nona, Flyndretind, Gamma, and Harepus with gas to be processed via Åsgard B thanks to five subsea templates, with CO2 intensity expected to be 3 kg per barrel of oil equivalent. The firm’s partner, Vår Energi, sees Halten East as an important contributor to its target of producing over 400 kboepd in the fourth quarter of 2025.

Torger Rød, COO of Vår Energi, noted: “Together with Johan Castberg and Balder X, Halten East is one of the major development projects starting up this year, bringing the Company’s production to above 400 kboepd by the fourth quarter 2025. Vår Energi is a reliable and secure supplier of energy to Europe, and the start-up of Halten East will add important gas volumes with low emissions, generating substantial value going forward.

“The project is a prime example of high value barrels being brought to the market quickly and at low cost, with two years from government approval to production and with a payback time of one year.”

The Norwegian Sea continues to be a high-value gas hub for Vår Energi, holding around 430 mmboe reserves plus resources net to the firm, which will target a further 200 mmboe through exploration targets in the next four years.