Equinor to Acquire Sval Energi’s 11.8% Stake in Halten East Subsea Development

Equinor Expands Stake in Halten East with Sval Energi Acquisition

Equinor has agreed to acquire Sval Energi’s 11.8% stake in the Halten East subsea development, increasing its ownership to 69.5%. This Equinor Halten East acquisition strengthens its position in the Norwegian Sea, allowing the company to fully leverage gas production. Vår Energi and Petoro will hold 24.6% and 5.9%, respectively. The deal will close in early 2024, with an effective date of January 1, 2024, pending regulatory approval.

Halten East: A Key Gas Project in the Norwegian Sea

Halten East lies in the Kristin-Åsgård area of the Norwegian Sea, where six major gas discoveries—Gamma, Harepus, Flyndretind, Nona, Sigrid, and Natalia—have been made. The project will connect to the Åsgard facilities, which will process and export gas to Europe. With an estimated recoverable reserve of 100 million barrels of oil equivalent (boe), 60% of which is gas, Halten East is set to significantly contribute to Norway’s gas exports. Furthermore, the project is expected to play a crucial role in meeting Europe’s growing energy demand. As a result, it will further reinforce Norway’s position as a key gas supplier, supporting the country’s energy security. Additionally, this development aligns with broader regional goals to ensure sustainable energy supply. Gas will flow through the Kårstø processing plant in southwest Norway, ensuring efficient transportation.

Project Development and Infrastructure

Halten East will install subsea templates across the southern and northern regions. A 49-kilometer pipeline will connect the southern structure to the Åsgard subsea compressor manifold station (SCMS), and a 22-kilometer pipeline will link the northern structure. By integrating with Åsgard’s existing infrastructure, the project reduces costs and improves efficiency. Production is set to start in 2025, marking an important milestone in Equinor’s investments in the Norwegian Continental Shelf (NCS).

Phased Development and Future Potential

The development will proceed in two phases. Phase one, from 2024 to 2025, will focus on drilling six wells across five gas discoveries. Phase two, set for 2029, will involve sidetracking one discovery and drilling up to three additional wells. This phased approach, consequently, reduces risk while simultaneously ensuring steady production growth. Moreover, it allows for gradual optimization, thereby minimizing potential setbacks and enhancing long-term efficiency. The Norwegian Ministry of Petroleum and Energy approved the project’s Plan for Development and Operation (PDO) in May 2022.

Strategic Importance for Equinor

Halten East plays a pivotal role in Equinor’s long-term strategy to optimize its portfolio in the NCS. The project aligns with Equinor’s focus on profitable, low-emission developments that advance its energy transition goals. Senior Vice President Grete Haaland emphasized the project’s strong profitability and its contribution to the company’s low-carbon ambitions. With solid infrastructure in place and a clear development path, Halten East is positioned to become a major asset for Equinor.