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ENERGY NEWS
Oil & Gas Germany halted the Russia-led gas pipeline project Nord Stream 2 after Russian President Vladimir Putin recognised two separatist regions in eastern Ukraine and deployed troops there. “We now have to reassess the dramatically changed situation: This also applies to Nord Stream 2,” German Chancellor Olaf Scholz said on 22 February, adding that “The certification cannot take place now.” The pipeline construction is complete, but Nord Stream 2 was awaiting regulatory clearance from Germany and a review by the European Union over its compliance with EU energy regulations. In wake of the escalation in Ukraine, Germany suspended the certification process. Italy’s Eni and Point Resources Holding, shareholders of Norwegian oil producer Vår Energi AS with 69.85 percent and 30.15 percent, respectively, said at the end of January they intend to launch an initial public offering for Vår Energi and for the company to apply for a listing on Oslo Børs. The IPO will provide access to the Norwegian and international capital markets, allow the company to diversify its ownership structure, and create a strong long-term shareholder base, Eni said. “The operation is part of Eni's strategy of enhancing its assets in order to free up new resources to be allocated to accelerate the energy transition strategy,” the Italian major noted. Norway’s Minister of Petroleum and Energy, Marte Mjøs Persen, officially opened Equinor’s Martin Linge field, which came on stream in June 2021. “The field is now producing very efficiently. With current prices, investments in the field will be recovered in full during 2022,” said Equinor’s CEO Anders Opedal. In a setback for its LNG project, Equinor announced at the end of January that the start-up of Hammerfest LNG plant was pushed from 31 March 2022 to 17 May 2022, “due to continuing consequences from Covid-19 and operational restrictions.” Equinor also said that the Wisting project in the Barents Sea is expected to take up investments in the range of NOK 60 – 75 billion ($6.7 billion - $8.4 billion) as it presented an impact assessment of the field’s development and operation. Equinor expects to finalise the development and operation (PDO) plan at the end of 2022. The Wisting discovery is of considerable size, containing close to 500 million barrels of oil equivalent, the company says. “The chosen concept is robust and adapted to Barents Sea operation, while at the same time well suited for Norwegian suppliers to be able to compete for major assignments,”
www.ogv.energy I March 2022
Europe
Energy Review By Tsvetana Paraskova
New oil and gas projects in Norway’s offshore industry and many green energy developments across the UK and Europe were the highlights in the energy sector in Europe over the past month, as tensions remained high in the Russia-Ukraine crisis. said Siv Irene Skadsem, vice president for new assets on the Norwegian continental shelf (NCS). Another major producer on the NCS, Aker BP, said in early February that the Norwegian Ministry of Petroleum and Energy had approved the Plan for development and operation for Kobra East & Gekko (KEG) in the Alvheim area. The KEG development will help extend the lifetime of the Alvheim field, improve production, and reduce unit costs, said Aker BP, operator of the field. Total investments in the project are expected at around NOK 8 billion (close to $1 billion) and production is scheduled to start in the first quarter of 2024. Recoverable reserves in KEG
are now estimated at around 50 million barrels of oil equivalents. Aker BP plans to drill 13 exploration wells in 2022, with unrisked volume potential estimated to around 250 mmboe net to Aker BP, the company said in its Q4 results and 2022 outlook release. Services provider Aker Solutions raised its 2022 full-year guidance as it expects a tight supply-demand balance to result in an attractive investment environment for the company’s customers, supported by greater confidence in the oil-price environment. Based on the secured backlog and market activity, revenue is now seen up by more than 20 percent from 2021.
