[Norway] Wisting

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[Norway] Wisting

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Equinor awards Wisting FPSO Study Contract to Sevan SSP

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Sevan SSP is pleased to announce that Equinor, together with the Wisting Licence partners, has awarded Sevan SSP a Study Contract for the Wisting FPSO, based on Sevan’s cylindrical hull design.

The Sevan design has been subject to various assessments from the Wisting license in recent years and participating in the concept selection studies is considered a significant achievement for the Sevan technology. Sevan SSP is now eager to start this next phase of work.
“With focus on the environment, safety and reliability we are looking forward to work with Equinor and other contractors to develop the best technical and cost-efficient solution for the Wisting Project”

– Sevan SSP Managing Director, Mr. Alf-Roger Skikstein
FACTS
  • Wisting (PL 537) was discovered in 2013 by OMV
  • Located in the Hoop area of the Barents Sea, around 310 kilometres from the Norwegian mainland
  • Volumes are estimated at 440 million barrels of oil equivalent
  • Licensees: Equinor (35%), OMV (Norge) AS (25%), Petoro AS (20%) and Idemitsu Petroleum Norge AS (20%)
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Re: [Norway] Wisting

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Equinor has, on behalf of the Wisting licence partners, awarded contracts for concept studies to further progress of the project development towards a final concept select decision.

“Wisting is a considerable oil field in the Barents Sea, and we are cooperating well with our partners in further maturing the project. Founded on experience and synergy potential within the project-portfolio we have assessed different development alternatives to identify potential solutions for a cost-effective and optimal field development” says Trond Bokn, acting senior vice president for project development in Equinor.

“Based on this work, the licence partners have decided to further assess a floating production unit based on a circular FPSO solution (floating production, storage and offloading). However, a lot of work remains before we can make a final concept select during second quarter of 2021,” says Bokn.

Equinor and the industry have ambitious plans for reducing greenhouse gas emissions from activities on the Norwegian continental shelf. The Wisting partners are focused on reducing the carbon footprint of the production to the lowest extent feasible.

“Electrification is considered a possible option for reducing field emissions. The project will study a power-from-shore solution for a circular FPSO going forward,” says Bokn.

In 2019, the authorities approved a transfer of the Wisting operatorship to Equinor in the development phase, while OMV will resume operatorship in the production phase. Equinor is leading the development project and personnel from OMV is well integrated in the project organisation.

Suppliers who have been awarded contracts in connection with the start of Wisting concept studies:

FPSO: Aker Solutions, KBR Ltd., Sevan SSP and Aibel
SURF (Subsea Production and Processing Equipment, Umbilical, Risers and Flowlines): Aker Solutions, TechnipFMC, OneSubsea Processing, IKM Ocean Design and Kongsberg Maritime
An investment decision for Wisting is planned at the end of 2022.

Partners: Equinor (35%), OMV (Norge) AS (25%), Petoro AS (20%) and Idemitsu Petroleum Norge AS (20%).
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Re: [Norway] Wisting

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Aker Solutions Wins FEED for Wisting FPSO

Aker Solutions has received a Letter of Intent (LOI) for a front-end engineering and design (FEED) contract from Equinor, for the FPSO for the Wisting field development in the Norwegian Barents Sea.

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The intended FEED contract includes an option for engineering, procurement, construction and integration (EPCI) of the topside for the FPSO. The scope of the FEED is to provide front-end design- and engineering for a circular floating production, storage and offloading (FPSO) solution, to further progress the project development towards a planned final investment decision. If the field development moves forward to execution phase, Aker Solutions estimates the EPCI option to potentially represent a significant1 contract, subject to final investment decision and regulatory approvals.

"Wisting is one of the largest upcoming industrial projects in Norway. We are looking forward to continuing our longstanding relationship with Equinor for this significant field development, and to mature the project towards a planned investment decision", said Sturla Magnus, executive vice president and head of Aker Solutions' topside and facilities business.

The FEED award follows the successful completion of the study phase, and the work starts immediately with planned completion in the third quarter of 2022. The FEED work will be led by Aker Solutions’ offices in Fornebu, Norway.

The Wisting FPSO is based on a Sevan design. The topside will have a weight of about 20,000 metric-tons, consisting of a large process module and a large utility module.

"This major project will have significant positive effects on employment for our engineering resources and at our yards in Norway and create substantial ripple effects for the society and local communities near the yards," said Magnus.

About the Field
Wisting is a greenfield development located in the Barents Sea, about 310 kilometers from the Norwegian mainland. Equinor is the operator of the field (35%), with partners OMV Norge AS (25%), Petoro AS (20%), Idemitsu Petroleum Norge AS (10%) and Lundin Energy Norway AS (10%).

The FEED contract will be booked as order intake in the fourth quarter of 2021 in the Renewables and Field Development segment.

1Aker Solutions defines a significant contract as being between NOK 8.0 billion and NOK 12.0 billion.
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Re: [Norway] Wisting

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Awarding major Wisting assignments to Norwegian industry
November 10, 2021 12:01 CET | Last modified November 11, 2021 08:08 CET

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On behalf of the Wisting licence partners, Equinor has today signed a contract with Aker Solutions for front-end engineering and design (FEED) of a floating production and storage vessel (FPSO) for the Wisting field. Valued at around NOK 350 million, the study includes an option for engineering, procurement, construction, and installation (EPCI) calculated at NOK 8-12 billion.

“Equinor is cooperating well with partners, the supplier industry and the authorities to ensure a successful development of the Wisting field, meeting the requirements expected for future oil and gas production. We plan to submit the plan for development and operation (PDO) to the authorities at the end of 2022. A decision to develop the Wisting field will generate considerable value for Norwegian society and spin-offs for Norwegian supplier industry both in the development and operations phases,” says Geir Tungesvik, senior vice president for project development.

The Wisting field is a standalone field development in the Barents Sea, containing close to 500 million barrels of oil equivalent. Capital investments are expected to be in the order of NOK 60-75 billion. The concept chosen for the Wisting development involves a circular FPSO and a power-from-shore solution to be integrated in the technical solution, resulting in very low CO2 emissions from the field.

The FEED contract includes an EPCI option. A floating production unit is to be developed in the FEED phase and Aker Solutions will be responsible for creating an overall solution covering topside facilities, living quarters and a hull. The supplier expects the total scope of work to involve around 5500 person-years. Any exercising of the option will take place at an investment decision.

Involving up to 270 people, the FEED work will mainly be carried out in Norway. Leirvik AS and Sevan SSP AS will contribute as sub-suppliers of engineering services for the living quarters and hull respectively.

“We have secured a supplier with extensive and relevant experience in engineering and construction of complex offshore projects on the Norwegian continental shelf. The contract strategy is based on using Norwegian suppliers by early involvement and will allow for utilizing the local supplier industry in North Norway, contributing to further development of this industry. The contract may help provide jobs for Norwegian yards and businesses for many years ahead,” says Mette H. Ottøy, chief procurement officer (CPO).

Equinor is cooperating with the Petro Arctic supplier network, which is mapping and having a dialogue with the supplier market in North Norway. Together we are planning a supplier seminar to be held during 2022.

Several FEED studies have been awarded following the Wisting partners’ decision to pursue the project (decision gate 2). The studies have been awarded to FMC Kongsberg Subsea, Technip Norge, Aker Solutions, OneSubsea Processing, IKM Ocean Design, Subsea 7, NOV and Baker Hughes Energy. The main part of this work will be carried out in Norway.

The PDO for the Wisting field will be submitted to the Norwegian Parliament (the Storting) after the partners have made an investment decision late 2022.

Licence partners: Equinor (35%), OMV (25%), Petoro (20 %), Idemitsu (10 %), and Lundin Energy (10%).
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Re: [Norway] Wisting

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Aker Solutions Formally Signs FEED Contract for Wisting FPSO

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Today, Aker Solutions formally signed the FEED contract with Equinor, valued at around NOK 350 million.

The contract will be booked as order intake in the fourth quarter of 2021 in the Renewables and Field Development segment.

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Re: [Norway] Wisting

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Completion of Wisting acquisition
17 December 2021

Lundin Energy AB (Lundin Energy) is pleased to note the completion of the previously announced transaction to acquire a further 25 percent working interest from OMV (Norge) AS in the Wisting development, for USD 320 million. Lundin Energy has also entered in to a cooperation agreement with Equinor ASA (Equinor) regarding the operatorship of Wisting and nearby exploration licences.

The transaction to acquire a further 25 percent working interest in the Wisting development has completed following the closing of all pre-requisite conditions, including regulatory and government approvals and is effective from 1 January 2021. In addition, Lundin Energy has concluded a cooperation agreement with Equinor for the Wisting development with the following key terms, which will see Lundin Energy:
  • Propose Equinor to retain operatorship of the Wisting development into the operations phase, allowing operational synergies across their various developments in the Barents Sea
  • Become operator for the exploration acreage surrounding Wisting (PL1133 and PL1134), including an increase in Lundin Energy’s working interest to 35%
  • Collaborate further with Equinor in the Wisting development by secondment of Lundin Energy employees into key technical and operational positions within the Wisting project
Wisting Acquisition Highlights:
  • Transaction increases Lundin Energy’s working interest in the Wisting development from 10 percent to 35 percent
  • Strengthens Lundin Energy’s position in a core area with significant remaining prospectivity and meaningfully contributes to the Company’s long-term production outlook
  • Adds net 130 million barrels of oil equivalent (MMboe) fully appraised contingent resources at an acquisition price of approximately 2.5 USD/boe
  • Project concept selection and award of front-end engineering and design (FEED) contracts has taken place with the project on track to submit a Plan for Development and Operation (PDO) by end of 2022
  • Wisting’s development concept is in line with Lundin Energy’s decarbonisation plan with a power from shore solution being matured
  • Addition of Wisting resources alone delivers total resource replacement ratio for the Company of approximately 190 percent in 2021
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Re: [Norway] Wisting

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Investment decision for the Wisting project postponed
10 NOVEMBER 2022

Equinor and the Wisting partners have decided to postpone the investment decision scheduled for December 2022. The maturation of the project continues, aiming for an investment decision by end of 2026.

“Equinor and partners have worked in close cooperation with the supply industry and developed a technically feasible and environmentally safe Wisting project for the Barents Sea. A development will generate substantial value for society and ripple effects in the north and nationally. In our updated investment estimate for the project, we see a cost increase due to increased global inflation and cost growth in the supply industry nationally and internationally. There is also uncertainty about the framework conditions for the project and execution capacity in the supplier market. Based on an overall assessment, we choose to postpone the investment decision,” says Geir Tungesvik, Equinor’s executive vice president, Projects, Drilling & Procurement.

Updated investment estimate for Wisting is NOK 104 billion. The project has a positive Net Present Value before and after tax after the cost increase.

Global inflation, and challenges in the energy markets because of the war in Ukraine, creates capacity challenges and bottlenecks among international and Norwegian suppliers. The lead time from the yards and from the equipment suppliers has increased.

“Many people have been working hard to realise Wisting, and the decision is demanding. However, in the current supplier market postponing the investment decision to ensure an economically sound development and robustness in the execution phase of the project is the right decision. When the pressure in the supplier market subsides, the Wisting project will be possible to execute in a good way,” says Tungesvik.

“Equinor has been present in Northern Norway and in the Barents Sea for more than 40 years, and the industry has generated substantial value, activity, and jobs. We have a long-term perspective with the Castberg field coming on stream in 2024, we will continue to explore, and we will further develop the Barents Sea”, says Kjetil Hove, executive vice president for Exploration & Production Norway.

“We will now, together with partners and suppliers, mature a profitable Wisting project that will have ripple effects in the North within the ordinary tax regime. We have previously successfully improved projects facing challenging cost developments prior to final investment decision. We will aim to do the same with the Wisting project,” says Hove.

Equinor and partners will now further mature the development concept, the power-from-shore solution, and consider new supplier models for Wisting.

The Wisting partners: Equinor Energy AS (35 %), AkerBP AS (35 %), Petoro AS (20 %) and INPEX Idemitsu Norge AS (10 %).

Facts about Wisting
  • Wisting (PL 537) was discovered in 2013 by OMV
  • Equinor is the operator in the development and operations phase
  • The discovery is located in the Hoop area in the Barents Sea
  • Wisting is located some 310 kilometres north of Hammerfest
  • Ocean depth between 390-418 metres
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