Equinor takes FID on Snohvit extension
Norway's Equinor and its partners at the Snohvit gas development in the Barents Sea have taken a final investment decision on a 3.2bn-krone ($385mn) project to extend the production plateau by two years, the company said on April 23.
The group will develop the Askeladd Vest structure, containing 134mn barrels of recoverable oil equivalent, using a subsea template tied back to the Askeladd field via a pipeline and an umbilical. Production is due to start up in 2024.
Snohvit usually supplies gas to the Equinor-operated Hammerfest LNG plant, but the facility has been out of action since a fire broke out in September last year. Norway's Petroleum Safety Authority (PSA) has concluded that there were serious breaches of regulations at the plant. Gas production at Snohvit fell to 3.78bn m3 last year from 6.22bn m3 in 2019, according to Norwegian authorities.
"By increasing the resource base for Hammerfest LNG, Askeladd Vest will be an important contribution in supporting our ambition of long-term presence in the north," Equinor said in a statement. "This will allow us to further strengthen the ripple effects of our activities in this part of the country, which is important to Equinor and its partners in the time ahead."
Equinor operates Snohvit with a 36.8% interest, while Petoro has 30%, Total 18.4%, Neptune 12% and Wintershall Dea 2.8%.