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Norway s npd approves startup of major aasta hansteen natural gas field

The Norwegian Petroleum Directorate (NPD) granted consent Friday for the startup of the major Aasta Hansteen natural gas field in the Norwegian Sea, giving operator Equinor (formerly Statoil) the green light to begin production this autumn.Hansteen — the first deepwater development in the Norwegian Sea and the first new NCS field to begin producing in 2018 — is behind schedule having originally been expected to begin production by the end of 2017.But production will add to Norway’s continuing record-high gas output, offsetting declines elsewhere on the NCS at more mature fields.The platform at Hansteen — which has estimated reserves of some 47 Bcm — will have a gas processing capacity of 23 million cu m/d and is linked to the Nyhamna gas processing facility via the new 480 kilometer Polarled pipeline.Hansteen itself is expected to produce up to 15 million cu m/d, but the platform will also take gas from the Equinor-operated Snefrid Nord satellite field whose development was approved by the Norwegian energy ministry in October last year.Discovered in 2015, Snefrid Nord is estimated to have reserves of about 5 Bcm of gas and is expected to come online in the fourth quarter of 2019, producing some 4 million cu m/d of gas.That leaves some spare capacity for any future gas developments in the region.UK EXPORTSGas from Hansteen will be transported in the Polarled pipeline to the Nyhamna terminal for onward export to the UK.”The startup of Hansteen opens the door for gas production from a completely new province in the northern Norwegian Sea,” Kalmar Ildstad, the NPD’s assistant director for development and operations in the Norwegian Sea, said.”After the project was approved by the Storting [Norwegian parliament] in 2013, several other interesting discoveries have already been made in the area,” Ildstad said.Germany’s Wintershall in March made a gas discovery with its first exploration well in production license 894 in the northern part of the Norwegian Sea some 115 km southwest of Hansteen.The company estimates recoverable reserves at up to 19 Bcm.”The production from the Hansteen field and other discoveries in the area will therefore contribute to ensuring long-term gas export from the Norwegian Shelf in the years to come,” Ildstad said.A total of eight production wells will be drilled at the field, with total investments for the project expected to amount to NOK37.5 billion ($4.5 billion).Norway is currently producing at record high levels, with its pipeline exports to Europe reaching an all-time high of 112 Bcm in 2017, according to data from S&P Global Platts Analytics.

Published: 01-09-2018

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