SLB and Subsea 7 announced May 2 that the Equinor ASA and the Subsea Integration Alliance, which comprises OneSubsea and Subsea7, signed a long-term strategic collaboration agreement that paves the way for exploratory work to begin on the Wisting Field offshore Norway and Bay Du Nord, offshore Newfoundland and Labrador, Canada.
The agreement enables early information sharing, technology innovation and other collaborative benefits expected to make subsea projects more economically viable, SLB and Subsea 7 said in separate press releases.
The agreement paves the way for collaboration to begin immediately on early, joint concept studies for two major projects. Under the same agreement, any resulting engineering, procurement, construction and installation work execution would be directly awarded to the alliance, if Equinor reaches final investment decision (FID) on the pair of projects.
Wisting is in the Barents Sea offshore Norway, and in November 2022, Equinor decided to hold off on the Arctic project due to ballooning project costs. Equinor operates the project with 35% interest on behalf of partners Aker BP with 35%, Petoro with 20% and INPEX Idemitsu with 10%.
Bay Du Nord is approximately 500 km northeast of St John’s, Newfoundland and Labrador, Canada, in 3,838 ft water depth. In May 2023, Equinor and partner BP decided to postpone FID on its $12 billion Bay Du Nord project for three years in an effort to lower project costs.
Recommended Reading
EQT’s Toby Rice: US NatGas is a Global ‘Decarbonizing Force’
2024-03-21 - The shale revolution has unlocked an amazing resource but it is far from reaching full potential as a lot more opportunities exist, EQT Corp. President and CEO Toby Rice said in a plenary session during CERAWeek by S&P Global.
Venture Global Gets FERC Nod to Process Gas for LNG
2024-04-23 - Venture Global’s massive export terminal will change natural gas flows across the Gulf of Mexico but its Plaquemines LNG export terminal may still be years away from delivering LNG to long-term customers.
Pitts: Producers Ponder Ramifications of Biden’s LNG Strategy
2024-03-13 - While existing offtake agreements have been spared by the Biden administration's LNG permitting pause, the ramifications fall on supplying the Asian market post-2030, many analysts argue.
US Asks Venture Global LNG to Justify Filing of Confidential Documents
2024-03-13 - The FERC request comes days after Venture Global LNG customers had challenged the company's request for a one-year extension of its startup and urged the regulator to make Venture Global release the confidential commissioning documents.
Belcher: Election Year LNG ‘Pause’ Will Have Huge Negative Impacts
2024-03-01 - The Biden administration’s decision to pause permitting of LNG projects has damaged the U.S.’ reputation in ways impossible to calculate.