Equinor Proposes Plan to Advance Eirin Gas Discovery in the North Sea

Equinor ASA (EQNR) has submitted a proposal to the Ministry of Petroleum and Energy to advance its Eirin gas discovery in the North Sea. The Eirin gas discovery, located in the central region of the North Sea, is estimated to hold 27.6 million barrels of oil equivalent.

The proposed plan involves installing subsea equipment, which will be connected to Equinor’s Gina Krog platform. The total investment for the project is expected to be slightly above NOK 4 billion ($373.2 million). By leveraging the infrastructure of the Gina Krog platform, Equinor aims to deliver new gas to Europe while maintaining strong profitability and minimizing CO2 emissions during production.

Extending Gina Krog’s productive life is of significant importance to the Sleipner area, and the Eirin development is crucial for increasing the supply of gas to Europe and extending the lifespan of current infrastructure. Production from the field is anticipated to commence in 2025, with the gas being exported through the Sleipner A platform.

Equinor’s commitment to minimizing emissions is reflected in their plans to electrify the Gina Krog platform and partially electrify Sleipner. The production from the Eirin field is expected to yield minimal emissions, equivalent to three kilograms of CO2 per barrel of oil equivalents.

This proposal marks the first offshore field development proposal submitted to Norwegian authorities this year. Equinor operates the field with a 78.2% stake, while Kuwait Foreign Petroleum Exploration Company holds the rest.

Equinor’s pursuit of new hydrocarbon reserves contributes to the expansion of the company’s asset portfolio and overall value. Shares of EQNR have outperformed the industry in the past six months, with a 19.6% growth compared to the industry’s 12.4% growth.

Source: Zacks Investment Research