Norwegian oil company Equinor is set to develop the Breidablikk, dubbed one of the largest undeveloped oil discoveries on the Norwegian continental shelf.
The company said Monday morning that it would, together with its partners Petoro, Vår Energi and ConocoPhillips submit the plan for development and operation for the Breidablikk to the Minister of Petroleum and Energy, in addition to awarding contracts for subsea facilities and upgrading of the Grane platform.
Grane is an oil field in the North Sea developed using an integrated accommodation, processing, and drilling platform with a fixed steel jacket
The expected production from the Breidablikk field is about 200 million barrels, with investments totaling about NOK 18.6 billion (around $1,95 billion).
Geir Tungesvik, Equinor’s acting executive vice president for Technology, Projects, and Drilling said: "The Breidablikk field is one of the largest undeveloped oil discoveries on the Norwegian continental shelf (NCS). Field development will create substantial value for the Norwegian society and the owners. We are also pleased to award two key contracts today at a total value of NOK 3.3 billion, including options. The contracts will contribute to important activity for the supply industry and secure jobs for many years,”
Tied to Grane
The development concept chosen for the Breidablikk field is a subsea development with 23 oil producing wells from four subsea templates that are controlled from Grane. Breidablikk will be tied in to the Grane platform for oil processing prior to being brought ashore at the Sture terminal.
The production from Grane will be monitored with advanced digital tools from Equinor's integrated operations center (IOC) at Sandsli to ensure optimal production and value creation from the wells.
"I am pleased that we together with our partners have matured the Breidablikk field to development. Breidablikk shows how the industry’s combined competencies create high value and returns from a world-class infrastructure on the NCS,” says Arne Sigve Nylund, Equinor’s executive vice president for Development and Production Norway.
“Breidablikk will contribute significantly to maintaining profitable production in one of our core areas on the NCS,” Nylund adds.
The Breidablikk development will include a control cable system for electricity and communication (DC/FO).
According to Equinor, this is a relatively new technology that can reduce the costs associated with further development of the field, in addition to facilitating the use of docking stations for subsea drones on the seabed. The phase-in of Breidablikk will reduce the CO2 intensity on the Grane field, the company said.
Aker wins subsea production facilities contract
The contract for subsea production facilities is awarded to Aker Solutions. The contract covers the delivery of four subsea templates and up to 23 subsea trees and associated components. The contract value is estimated at about NOK 2.5 billion ($261,64 million), including options.
According to Equinor, around 300 man-years in Norway will be associated with the project for the supplier, with project management and engineering at Fornebu and Tranby, fabrication in Egersund and Sandnessjøen and service organization in Ågotnes. In addition, there will be deliveries from the UK, Malaysia, and Brazil.
Wood to modify Grane
Wood, the maintenance and modification supplier for Grane, has performed studies for the Breidablikk project, and an option for engineering, procurement, construction and installation (EPCI) will now be exercised for the company.
The work scope includes equipment installation on the Grane platform in order to receive oil from the Breidablikk subsea facility. Existing processing equipment and water purification system on the platform will be upgraded. With an estimated value of about NOK 800 million, the contract is expected to create over 500 man-years in Norway. The engineering work will be performed in Sandefjord and the fabrication will take place in Stavanger.
Earlier this year TechnipFMC won a contract for pipelaying in the Breidablikk project with options for subsea installation. The award contributes to sustaining workplaces for TechnipFMC in Norway, including the Orkanger spool base, where the pipelines will be fabricated before they are reeled onto the installation vessel, Equinor said.
"All contracts have not been awarded, however about 70% of the value creation in the development phase is expected to go to Norwegian companies. The contracts are subject to government approval of the plan for development and operation," Equinor said.
Oil will be transported through the Grane oil pipeline to the Sture terminal in Øygarden municipality for storage and shipping. The field will be operated from Equinor’s Sandsli facilities in Bergen. Breidablikk is being phased in during a period of declining oil production at Grane and will help maintain the activity level on the platform.
First oil from the field is scheduled for the first half of 2024.
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