Norway has once more revised up the estimated price of creating the Martin Linge oil and fuel subject, which state-controlled Equinor purchased from France’s Total final yr, with the start-up delayed till 2020, based on the fiscal finances.

The North Sea subject is now anticipated to price 47 billion crowns ($5.7 billion) to develop, up from the 41 billion crowns estimated final yr, and 59 p.c greater than initially seen in 2012.

The subject’s start-up has additionally been pushed again to the primary quarter of 2020 from the primary half of 2019, the finances confirmed.

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Equinor, previously generally known as Statoil, turned the operator of the sector in 2017 after shopping for a 51 p.c stake from Total for $1.45 billion.

Equinor confirmed the start-up delay in a separate assertion, and mentioned the associated fee improve was based mostly on its evaluation of the remaining work.

Despite the rise, the corporate mentioned it had managed to chop prices for its mixed developments on the Norwegian continental shelf by 30 billion crowns in contrast with authentic estimates.

The firm has decreased prices at its Johan Sverdrup Phase 1 growth by 30 p.c alone to 86 billion crowns, it mentioned.

Norway’s fiscal finances confirmed the Phase 1 price estimate decreased to 102.6 billion crowns from 124.6 billion in 2015.

The two estimates are far aside as a result of the finances and firm deal with alternate fee results in a different way.

The finances estimate additionally included prices for everlasting reservoir monitoring and a polymer injection challenge at Johan Sverdrup, which the corporate included in capital spending for the Johan Sverdrup Phase 2 challenge, Equinor mentioned.

The total price reductions have been primarily as a consequence of elevated drilling effectivity, simplification and easy challenge implementation, Margareth Oevrum, Equinor’s government vp for know-how, tasks and drilling, mentioned within the assertion.

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As of Sept. 1, there have been 18 subject developments on the Norwegian continental shelf, with approval pending for an additional three tasks, the finances confirmed.

Source: www.reuters.com

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