Equinor has finalized plans on an 18.6 billion Norwegian crown ($1.95 billion) development of the North Sea discovery.
Equinor made this agreement alongside its partners in Norway’s Breidablikk oil discovery, the state-controlled company said on Monday.
Equinor in a statement said, “The Breidablikk field is one of the largest undeveloped oil discoveries on the Norwegian continental shelf,”.
Partners in the field are ConocoPhillips COP.N, Petoro and Vaar Energi, a unit of Eni ENI.MI.
Equinor said the field is estimated to contain some 200 million barrels of oil and is scheduled to begin output in the first half of 2024.
The project was welcomed by Energy minister Tina Bru, calling it important for the country.
In a statement, she said, “The Breidablikk development will provide great value creation, tax revenues for the community and significant ripple effects for companies and local communities on the mainland,”.
Deploying remote-control technology designed to cut costs, the field will have subsea-installations only, rather than a traditional platform, taking advantage of its proximity to the older Grane oil platform and an extensive pipeline network.
Equinor noted that the project also comes at a time of declining oil output from Grane.
“This is an important project in terms of improving recovery from the Grane area, and it is also a good utilisation of existing infrastructure,” said Arvid Oesthus, assistant director at the Norwegian Petroleum Directorate (NPD).
Equinor said the Breidablikk field consists of discoveries made in adjacent licenses, in which the operators have differing stakes, and the final distribution of ownership of the field will thus be decided by the energy ministry.
The plan was the latest in a string of oil and gas investments announced since June when the Norwegian parliament introduced tax breaks for the industry in a bid to preserve jobs threatened by the COVID-19 pandemic.