Norwegian energy giant Equinor has halted operations at its Gullfaks C platform in the North Sea due to a well control issue, according to a company spokesperson cited by Reuters. The incident also led to the evacuation of some workers from the platform.
Despite the well control problem, production from the Gullfaks field remains stable, the spokesperson confirmed. However, the Norwegian gas system operator has reported that natural gas production at the Gullfaks field will be reduced by 6.6 million cubic meters today. The field primarily produces crude oil.
Equinor, which operates the Gullfaks field, holds a 51% stake in the project. Other stakeholders include Norway’s gas system operator Petoro and Austrian energy company OMV.
In recent financial news, Equinor reported a decline in its second-quarter profits this year. Nevertheless, the net results surpassed analyst expectations, driven by increased natural gas sales and higher prices for its marketed products.
Norway stands as the world’s fourth-largest natural gas exporter. In 2023, the country supplied nearly a third of the natural gas consumed in the European Union and the United Kingdom, as per data from Norwegian Petroleum. Oil and gas together accounted for 62% of Norway’s total exports.
Norway’s statistical agency recently forecasted a record-high investment in oil and gas developments for this year, spurred by rising costs and the expansion of existing fields. Total investments in oil and gas activities, including pipeline transportation, are expected to reach an unprecedented $24 billion (257 billion Norwegian crowns) in 2024, according to Statistics Norway.
This latest investment estimate is 4.1% higher than the projections made in the second quarter. The increase is largely attributed to higher cost estimates for production drilling in ongoing field operations, the agency noted.
Furthermore, investment estimates for this year are 21% higher compared to the corresponding estimates for 2023, based on the third-quarter 2023 survey. The rise in investment is partly due to significantly higher costs reported for certain development projects than initially anticipated by the operators, according to Statistics Norway.