Equinor has discovered deficiencies in four of the wells in the Martin Linge field and must drill again. The extra cost is estimated at NOK 2 billion.
“Four gas wells that were drilled in the Martin Linge field before 2018 have proven deficiencies in the well barriers that make them unsuitable for safe production,” writes Equinor in a press release.
The company took over the exploitation of the entire field in 2018 and owns 70% of the project. Through Petoro, the state has the remaining 30%.
Equinor claims that an in-depth study of the wells has shown that all four gas wells have proven deficiencies in well barriers.
The Martin Linge plant is designed for a mixture of oil and gas and requires gas wells that produce at a certain start-up and production rate.
“The most important thing for us is to ensure a safe start-up of the field, so we plan to drill up to three new gas wells in addition to the two remaining wells in the Development and Operation Plan (ODP) to get the field producing as originally planned,” says the Acting Executive Vice President of Technology, Projects and Drilling at Equinor, Geir Tungesvik.
According to the company, it will cost around NOK 2 billion to drill three new wells.
It is already known that there have been major cost overruns in the Linge field. According to the E24, the total cost overrun is NOK 26 billion, and the project had an estimated cost of NOK 56 billion last year.
A new total cost calculation will be connected to the state budget in October.
“Equinor provides an update on all projects under development to the Norwegian authorities, including the implications of Covid-19,” the company said.
© NTB Scanpix / #Norway Today