| 24 May 2024, Friday |

Equinor makes its 6th Norwegian oil discovery of 2021

Norway’s energy major Equinor said on Monday that it has made an oil discovery estimated to provide up to 62 million barrels of crude off the coast.

The discovery, just north of the Tyrihans field and west of the Kristin development in the Norwegian Sea, was the state-controlled firm’s 6th find in domestic waters this year, it said.

Equinor aims to map out resources close to oil and gas fields that are already in operation, thus accelerating development time and maximizing the value of its investments.

“Future value creation will largely come from increased recovery from existing fields, and connection of new discoveries close to existing infrastructure,” Equinor said in a statement.

“Such near-field discoveries are profitable, robust against fluctuations in oil (and) gas prices, they have a short payback period and low emissions,” the company added.

Equinor has said it will also invest in renewable power, as the pressure grows on oil companies to shift to low-carbon energy. Developing any new fossil fuel, however, runs counter to the goals of U.N. climate talks taking place over the coming two weeks in Glasgow, Scotland.

The International Energy Agency (IEA) has said the world requires to stop investment in new oil and gas by next year.

Initial analysis of the well, drilled to 3,883 meters below sea level and named ‘Egyptian Vulture’ by Equinor and its partners, indicated the discovery contained a light-oil quality, well-suited to refiners.

It included between 3 million and 10 million cubic meters of recoverable oil, corresponding to between 19 million and 62 million barrels, it added.

“The discovery will be assessed for further appraisal and assessed for tie back to existing fields in the area,” the company said.

Partners in the licence were Longboat Energy, with a 15% stake, and Poland’s PGNiG, which holds 30%. Operator Equinor holds the remaining 55%.

  • Reuters