Equinor brings Utgard gas, condensate field on stream

Utgard gas and condensate field, spanning the Norwegian-UK border in the North Sea, came on stream Sept. 16, reported Equinor Energy AS, the operator. The company estimates Utgard’s resources at 40 million boe.

190917 Equinor Utgard
Equinor

Utgard gas and condensate field, spanning the Norwegian-UK border in the North Sea, came on stream Sept. 16, reported Equinor Energy AS, the operator. The company estimates Utgard’s resources at 40 million boe. The project marks the first time Equinor has led a field development for recovering resources across the border between the Norwegian and UK continental shelves. Peak production is expected to reach 43,000 boe/d.

Field development consists of two wells from a subsea template tied back to Sleipner field by a pipeline and an umbilical. The template is installed on the Norwegian side of the border, with one well on each side.

The field was discovered in 1982. In 2016, Equinor acquired the UK share of the discovery. The plan for development and operation and the field development plan were submitted to Norwegian and UK authorities in 2016 and approved in 2017 (OGJ Online, Jan. 17, 2017). At that time the cost estimate was 3.5 billion kroner (fixed), and start-up was scheduled for yearend. The Norwegian Petroleum Directorate granted consent to start production in August (OGJ Online, Aug. 14, 2019).

The project has been delivered 900 million kroner below the cost estimate, ahead of schedule, and without personal injuries, the company said.

Utgard will be remote-operated from Norwegian Sleipner field, where the well stream will be processed before dry gas is transported to the market through the Gassled pipeline system, and liquids are sent through the existing pipeline to Karsto for further export to Europe. Utgard also will utilize Sleipner’s facility for carbon dioxide purification and storage.

“By reusing the existing infrastructure, we can, with relatively low investments, realize smaller discoveries that would not otherwise have been profitable enough to develop,” says Arne Sigve Nylund, Equinor executive vice-president for development and production Norway.

Equinor Energy AS holds 38.44%. Equinor UK Ltd. holds 38%. Partners are LOTOS E&P Norge AS 17.36% and KUFPEC Norway AS 6.2%.

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