Equinor closes North Sea platform

Norway’s Equinor has shut down its Gulllfaks C platform in the North Sea following a well control problem that also prompted the evacuation of some workers, Reuters reported. reportedciting a company spokesman.

The spokesman added that production from the field is stable. Even so, the Norwegian gas system operator said natural gas production at the Gulfaks field would be cut by 6.6 million cubic meters today. The field produces mostly crude oil.

Equinor is the operator of the Gulfaks field with a 51% stake and minority partners including Norwegian gas system operator Petoro and Austria’s OMV.

Majority of Norwegian state oil and gas reported a drop in second-quarter profits this year, although the net result beat analysts’ estimates. The result was attributed to higher sales of natural gas and higher prices for the products that Equinor markets.

Norway is the fourth largest exporter of natural gas in the world. Last year, it accounted for nearly a third of gas consumed in the EU and the UK, according to the report Norwegian oil. Oil and gas together account for 62% of Norway’s exports as of 2023.

The country’s statistics agency recently reported that investment in oil and gas development this year will hit a record high amid rising costs and expansion of existing fields.

Total investment in oil and gas activity in 2024, including pipeline transportation, is expected to reach an all-time high of $24 billion (NOK 257 billion), Statistics Norway said earlier this month.

The latest estimate is 4.1% higher than investment plans in the second quarter survey.

“The increase in estimates is mainly driven by higher cost estimates in production drilling in on-stream fields,” Statistics Norway said.

Oil company investment estimates for this year are also 21% higher than the corresponding estimate for 2023 in the Q3 2023 survey.

“The higher estimate for land development is related to the fact that significantly higher costs have now been reported for some development projects than operators had previously estimated,” according to Statistics Norway.

By Charles Kennedy for Oilprice.com

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