Equinor Reports Cost Increases On 19 Key Projects In Norway

10/7/2024 6:10:32 AM

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 7. Equinor is currently the operator of 19 projects in various stages of development in Norway, says the producer in its latest statement, Trend reports.

According to the proposed National Budget for 2025, the Ministry of energy has outlined the status of 13 of these Equinor-operated projects, which are either under development or have recently been completed.

These projects represent a substantial investment framework totaling 198 billion kroner, covering all phases from commencement to commissioning.

Trond Bokn, head of project development at Equinor, stated, “Equinor has a strong portfolio of profitable projects in Norway that will enhance the long-term security of oil and gas supply to Europe. In 2023, our developments contributed significantly, injecting 25 billion kroner into the Norwegian supplier industry. Alongside our partners and the industry, we successfully completed six projects over the past year.”

However, the reported projects have faced a cost increase of 6.5 billion NOK (2024 figures) over the last year, amounting to roughly 3 percent. When comparing to the original plans for development and operation (PDOs), the total increase reaches 32.9 billion NOK, with currency effects accounting for 12.4 billion of this amount. Excluding the Johan Castberg project and currency fluctuations, the cost rise for the reported projects is approximately 3 percent since the PDOs were established.

Notably, two projects-Johan Castberg and Oseberg gas compression and partial electrification-have seen post-PDO cost increases exceeding 20 percent, prompting their specific mention in the proposed national budget.

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