Equinor and Åsgard license partners will invest just under 1.4 billion kroner to further develop the field and implement the Åsgard B low-pressure project in the Norwegian Sea.
Åsgard started producing in 1999, and the transition to low-pressure production is important to secure improved recovery from the field.
“We can still produce 400-500 million barrels of oil equivalent from the field. This means value creation in the order of NOK 150-200 billion. The current recovery rate for the field is almost 50%, but our ambition is to extract 60% of the hydrocarbons in the reservoirs before the field will have to be shut down,” said Randi Hugdahl, vice-president for Åsgard operations.
The concept will modify the platform to reduce inlet pressure by replacing reinjection compressors and rebuilding parts of the processing infrastructure. The project will increase production from current Smørbukk wells. Start-up of low-pressure production is expected in 2023.
A front-end engineering and design (FEED) contract was awarded to Aker Solutions in December 2019 for modification work on Åsgard B in connection with the project. The contract has been expanded into an engineering, procurement, construction, and installation (EPCI) contract valued at 800 million kroner. Project management and engineering will be carried out in Trondheim, while prefabrication will take place at the yard in Egersund. Work will start immediately and is planned to continue through 2024.
Gas from Åsgard is piped through Åsgard Transport to Kårstø, north of Stavanger. Installations at Åsgard have delivered more than 2.8 billion boe.
Equinor is operator at Åsgard (34.57%), with partners Petoro AS (35.69%), Vår Energi AS (22.06%), and Total E&P Norge AS (7.68%).