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Equinor will expand the Breidablikk discovery in the North Sea at a cost of NOK 18.6 billion. This is the largest project to date to get the go-ahead after the Storting’s crisis package for the oil industry.
Illustration of the Grane field in the North Sea.
Øyvind Hagen, Equinor
Published:,
Breidablikk (formerly Grand) will connect to the Grane field in the North Sea. The cost had previously been estimated at up to NOK 20 billion.
The expected start of production is planned for the first half of 2024. The field is expected to produce 200 million barrels of oil equivalent.
Equinor has indicated that the project will be able to provide 11,000 man-years in Norway in the project phase, which is positive for a supplier industry struggling with low activity after the crisis of the crown and the fall in oil prices.
The purpose of the project is to expand the resources located north of the Grane field using the existing infrastructure. This will help extend the production time of the field.
– The Breidablikk field is one of the largest oil discoveries on the Norwegian shelf that has yet to be developed. The decision to expand the field will provide significant value to Norwegian society and owners, says Geir Tungesvik, acting director of technology, projects and drilling at Equinor in a press release.
– We are pleased that today we are also able to award two key contracts with a total value of NOK 3.3 billion, including options. The contracts will contribute to important activity for the supplier industry and will secure jobs for many years, Tungesvik continues.
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Award Billion Dollar Contracts
Aker Solutions has previously announced that it has signed a letter of intent with Equinor for the delivery of production facilities on the seabed. This is now one of the awarded contracts.
This contract has an estimated value of NOK 2.5 billion, including options. Around 300 man-years in Norway are expected to be associated with the project.
– The contract demonstrates our competitive position in the subsea market and will lead to more activity at many of our facilities in Norway and internationally, creating jobs for hundreds of employees at Aker Solutions, says Aker Solutions CEO Kjetel Digre in a statement.
At the same time, Grane’s maintenance and modification provider, Wood has a choice exercised for design, acquisition, construction and installation.
The work consists of installing equipment on the Grane platform in order to receive oil from the Breidablikk field. The contract is worth around NOK 800 million and is expected to provide more than 500 man-years in Norway.
Crisis package
The decision to proceed with the project comes after Aker BP made an investment decision earlier this summer for the Hod field, a satellite of the Valhall field, just 24 hours after the Storting’s agreement on a crisis package for the oil industry.
The crisis package with tax deferrals for the oil industry was aimed at facilitating increased investment in a period of low oil prices after the crown crisis.
It is good news for the Storting that oil companies are keeping their promises and making decisions about new developments. Many players are refraining from spending money at an oil price of $ 40 a barrel. On New Years, the price was $ 66 a barrel.
The most recent estimates from oil companies operating in Norway are that they will invest NOK 184.6 billion this year, while the estimate for 2021 is NOK 148.6 billion. according to Statistics Norway.
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The most valuable find
In the New Year, state ownership of the Norwegian continental shelf was worth NOK 1.044 billion, and 91 percent of this is in the field. The most valuable are Troll, Johan Sverdrup, Oseberg and Heidrun.
Only five percent of the values are in discoveries that have not been developed.
Among these, Breidablikk is the most valuable find, according to a Rystad Energy report this summer.
These will expand the field
Equinor has previously estimated a Norwegian share of around 60 percent for the Breidablikk project suppliers. Players who have been awarded contracts to work at Breidablikk include Aker Solutions and Technip FMC.
On Monday, Equinor emphasized that not all contracts have been awarded, but that around 70 percent of the value creation in the development phase is expected to go to Norwegian companies.
In addition to Aker Solutions and Wood, whose contracts will be confirmed on Monday, Equinor has previously entered into an agreement with Technip FMC. In June, Technip FMC entered into an agreement for plumbing and installation work on three projects on the Norwegian platform for NOK 1.8 billion, one of which is Breidablikk.
Equinor is the operator of the Breidablikk discovery. The co-owners are State-owned Petoro, Vår Energi and ConocoPhillips.
