Equinor-led group selects development concept for Haltenbanken East gas finds

A group of four companies operating offshore Norway, led by state-controlled Equinor, has selected a development concept designed to bring online six discoveries that were essentially considered as stranded assets, partner Spirit Energy said May 19.

The project to monetize the six discoveries and an additional three prospects -- brought together under the Haltenbanken East project -- will see the finds in the Norwegian Sea tied back to the Asgard B platform using existing facilities and infrastructure.

The six discoveries are Gamma, Harepus/Mikkel South, Flyndretind, Nona, Sigrid, and Natalia, while the three additional prospects are Flyndretind Ile, Tussen, and Rita.

"These discoveries were basically considered stranded assets -- it would not have been economically viable to develop any of them on their own," Spirit asset manager Gunn Gadeholt said in a statement.

"The unitization approach will unlock the potential and deliver value both in the development and production phases of the project," Gadeholt said.

Equinor has a 57.7% operating stake in Haltenbanken East, together with Var Energi (24.6%), Spirit (11.8%), and Petoro (5.9%).

An Equinor spokesman told S&P Global Platts on May 19 that the development plan was in line with how the company continued to develop its activities offshore Norway. "We are working on a large number of improvement measures including the possibilities for coordinating several smaller discoveries and fields," he said.

100 million boe

Haltenbanken East will be developed as a unit between four different licenses and comprise the six discoveries and three prospects, with a combined volume in the order of 100 million barrels of oil equivalent, mostly gas.

The project is planned to be executed in two phases. The first will consist of drilling of six wells to five of the discoveries.

The second phase includes the last discovery and three prospects, planned to be drilled as side-tracks from existing wells.

"Haltenbanken East delivers robust economics and is a good strategic fit for Spirit," Gadeholt said.

"The objective of the next project phase is to mature the project towards a final investment decision in the first half of 2022."

Submission of a Plan for Development and Operations (PDO) to the Norwegian authorities is scheduled in the second half of 2022.