Norway currently has the highest number of conventional oil and gas expansion projects under construction globally, according to a recent GlobalData report.
The country remains focused on maximising value through existing fields, primarily operated by majority state-owned company Equinor.
GlobalData records 17 upcoming field expansion projects off the coast of Norway, seven of which are currently under construction. Equinor is operating six of these seven projects.
Expansion efforts could exceed $10bn in capital expenditure (capex) in total and are set to unlock over 3 billion barrels of oil equivalent. Field expansion projects in Norway remain competitive against ongoing planned greenfield developments and are able to unlock reserves at viable investment levels.
Norwegian giant Equinor has a strong track record of maximising recovery from major fields in its home country. The company has been able to achieve recovery factors of more than 50% from large fields such as Statfjord and Gullfaks through enhanced and/or improved recovery mechanisms.
Utilising innovative technologies, improved production efficiency and enhanced recovery practices have been key to Equinor’s success in maximising value from Norwegian fields. The company is targeting 70% recovery from the Johan Sverdrup project.
Redevelopment programmes of the currently abandoned Hod and Tor fields are being finalised, as both have substantial oil volumes remaining. Both developments indicate profitability with project break-evens of just under $48 per barrel.
Central North Sea fields Albuskjell, Brynhild and Mime all ceased production, recovering less than 20% of their oil resources in place. Albuskjell produced for 19 years, recovering just 13% of the total oil resources.
The Albuskjell field produced predominantly from the Upper Cretaceous Tor Formation reservoir but the overlying, less desirable Ekofisk Formation is thought to contain significant untapped resources.
A further 10% recovery at the field could unlock around 35 million barrels of oil. Mime and Brynhild, two relatively small subsea oil developments sit roughly 40 km (25 mi) apart in the Central North Sea.
The average oil recovery of producing fields in Norway is currently around 45% and closer to 70% for gas fields. These recoveries have been the outcome of advancements in recovery technology coupled with significant investment and government led initiatives.