Following the results of the 31st LR on the UKCS, Equinor received a three-year extension on the Rosebank license.
The operator aims to reduce development costs, this being achievable through digitalisation and embrace of new approaches when developing and planning in rough environments. Equinor has Johan Castberg and Bay du Nord as example when it comes to developing efficiently, with Rosenbank benefiting from their experience and knowledge.
Equinor managed to reduce breakeven costs on the Johan Castberg project from the mid-$70 per barrel range to the mid-30s and believes it can apply those learnings to the “similar” Rosebank. Like Johan Castberg, Equinor is assessing the options for an FPSO for Rosebank.
Ross Cassidy, Wood Mackenzie’s senior research manager, mentioned in 2018 that development costs can go up to $6 billion in total, involving a new-build, harsh environment floating production, storage, and offloading vessel and up to 20 production wells. It will be curious to see how much Equinor and partners can save up and productively develop the field.
The potentially recoverable volumes at Rosebank are expected to be more than 300 million barrels.
Equinor has a strong presence on the UKCS via different upstream projects, several offshore wind farms and one of the main natural gas & oil supplier.
A final investment decision is planned to be taken by May 2022.