Norwegian oil firm Equinor said Monday it had brought online one of its most profitable projects ever, Troll phase 3 project in the North Sea, offshore Norway. Production started on Friday, August 27, at 9.25 pm.
According to Equinor, the project has a break-even price below 10 dollars and CO2 emissions of less than 0.1 kg per barrel oil equivalent. The new wells are tied in to the Troll A platform and Troll phase 3 will extend the platform’s life past 2050.
Recoverable volumes from Troll phase 3, which will produce the Troll West gas cap, are estimated at as much as 347 billion cubic meters of gas. Converted into oil equivalent this amounts to 2.2 billion barrels. Investments are approximately NOK 8 billion (around $918 million).
Arne Sigve Nylund, executive vice president of Projects, Drilling and Procurement: "Troll phase 3 is one of the most profitable projects throughout Equinor’s entire history, while at the same time featuring production with record-low CO2 emissions. This is thanks to large gas reserves and a development solution mostly based on existing infrastructure, such as pipelines, the processing plant at Kollsnes and, not least, the Troll A platform which receives power from shore. The project has been executed without serious injuries, which is extremely important."
The Troll partners are Equinor, Petoro, Shell, TotalEnergies, and ConocoPhillips.
"Troll has generated substantial revenues for 25 years and will continue to do so for many years to come. Annual state revenues from the Troll phase 3 project alone are estimated at an average of more than NOK 17 billion (2021) [around $1,95 billion]," Equinor said.
The Troll phase 3 project consists of eight wells in two templates, a new pipeline and umbilical connecting the templates to Troll A as well as a new gas processing module on the platform.
Also, Equinor said that some 70 percent of the deliveries to the Troll phase 3 project come from Norwegian suppliers.
"The annual export volume from Troll is equivalent to approximately 8% of the EU’s gas consumption, and the further development of the Troll field also reinforces Norway’s ability to secure gas deliveries to Europe in the coming decades," Equinor said.
“Troll phase 3 will extend the life of Troll A and the Kollsnes processing plant beyond 2050, and the plateau period by 5-7 years. This will help secure jobs offshore, at Sandsli and at Kollsnes for both Equinor and its suppliers for several decades into the future,“ says Kjetil Hove, Equinor’s executive vice president for Exploration and Production Norway.
Like several other projects, Troll phase 3 has also felt the effects of Covid-19. The original start-up date for the project was in the second quarter of 2021, but pandemic-related labor shortages and infection control measures have delayed start-up somewhat, the company added.
“I want to thank our own employees, our partners, and suppliers who have done a fantastic job during difficult times. We’ve made this happen together,” Nylund said.