Norway To Join Oil & Gas Majors On CCS Project

The Norwegian government announced April 11 that it plans to invest alongside oil and gas majors in an exploration well for CO2-storage on the Norwegian Continental Shelf (NCS).

The government said in a statement that it will propose to parliament a contribution of NOK 345mn ($40mn) into an exploration well that will test the potential for developing a reservoir under a Carbon Capture and Storage (CCS) project.

Equinor, Shell and Total are working on a solution for transport and storage, the government statement notes. The exploration well will provide information that will be important for deciding on whether to progress with the CCS project, the government said.

“The three companies are financing a significant share of the expenses related to the pilot project, and have asked the government to contribute to the funding of the exploration well,” it added. The total cost of the well is estimated at NOK 535mn.

Oslo says it has an ambition of realizing a cost efficient solution for full scale capture, transport and storage of CO2 in Norway, provided that such a project will contribute to technology development internationally.

“I am glad that we have now reached an agreement with the companies regarding the cost allocation for the exploration well,” said minister of petroleum and energy Kjell-Borge Freiberg. “The costs will be significant for both the state and the companies.”

“In order to reach our climate goals, CO2-capture and storage is a necessary technology,” added minister of climate and environment Ola Elvestuen. “A successful Norwegian project will be significant for the further development of CCS in Europe and globally.”