Two consortiums with majority state-owned Equinor ASA have received two new exploration licenses for carbon dioxide (CO2) storage on the Norwegian aspect of the North Sea.
Equinor and London-based Harbour Vitality PLC collectively received a allow straddling blocks 15/8, 15/9, 15/11 and 15/12. The allow, EXL012, lasts 4 years with three phases. Harbour Vitality Norge AS holds a 60 p.c stake as operator whereas Equinor Low Carbon Resolution AS has 40 p.c, in line with the work program revealed on-line by the Norwegian Offshore Directorate.
EXL013 went to a 50-50 enterprise between Equinor Low Carbon Resolution as operator and Aker BP ASA, additionally an area firm. The four-year, three-phase allow covers blocks 25/1 and 30/10.
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The companies are to conduct research and, in section 3, give you a growth plan and a remaining funding determination, in line with the work program.
“The permits are provided with a binding work program, with built-in milestones to make sure environment friendly progress, or relinquishment of the acreage if the licensees don’t full the storage mission”, the Vitality Ministry stated in an announcement on its web site saying the brand new awards.
Vitality Minister Terje Aasland stated, “Norway has a singular alternative to take a number one function in large-scale industrial CO2 storage in Europe”.
The Norwegian continental shelf holds a theoretical CO2 storage capability of 80 billion metric tons, which represents about 1,600 years of Norwegian CO2 emissions at present ranges, in line with an announcement by the Vitality Ministry April 30.
“The federal government is dedicated to creating CO2 storage a worthwhile and sustainable trade in Norway”, Aasland stated. “As we speak’s awards are an vital step in making certain that the complete worth chain is in place, in order that our bold plans might be realized”.
The awards have been for 3 areas introduced June 6, for which six corporations submitted proposals. The three winners edged out Horisont Energi AS, Storegga Norge AS and TotalEnergies EP Norge AS.
“Numerous gamers within the trade have proven curiosity in new storage areas”, Aasland added. “This makes me optimistic about additional progress within the work to make CO2 storage a part of the answer to the world’s local weather problem”.
Earlier this yr Equinor and two consortiums have been awarded 4 CO2 storage exploration permits within the Norwegian North Sea. Equinor bagged two. The opposite two went to a bunch comprising Lime Petroleum AS, OMV (Norge) AS and Var Energi ASA, and one other consortium consisting of Aker BP ASA and PGNiG Upstream Norway AS, as introduced by the ministry June 20. The awards have been for an invite made March 6.
Licensing for CO2 storage is a part of Norwegian laws handed December 2014 to help CO2 storage as a method to mitigate local weather change. An exploration allow grants “an unique proper to exploration with a view towards assessing the potential for exploitation of a subsea reservoir for storage of CO2”, per the official textual content of the laws.
“The award of exploration licenses will usually be performed with a piece program together with one binding section and subsequent conditional phases with determination factors for the continuation or relinquishment”, the Vitality Ministry says. “Relinquishing permits different stakeholders with storage wants to use for awards of the realm.
“The work program will usually finish with a requirement that the businesses make an funding determination on the belief of CO2 a storage, and that they then submit a plan for growth and operation for the storage location or relinquish of the realm”.
To contact the creator, e-mail jov.onsat@rigzone.com
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