Spirit Energy has signed deals with Subsea 7, TechnipFMC and DNV GL for the planned development of the Fogelberg discovery in the Norwegian sea, as the operator chases a tight deadline to pull the trigger on the project.

UK-based Spirit and its partners in the field — Poland's PGNiG, Norway's DNO and Dutch player One-Dyas — have a deadline of 31 March to decide whether, at that time, to take development of the 46 million barrels of oil equivalent gas and condensate discovery to the concept study phase.

Although Upstream learned that it is highly likely the field will be developed, due to high activity levels on Equinor's Asgard B host platform, the Norwegian state-controlled giant is said to favour Fogelberg being developed in conjunction with development of the Iris/Hades discovery, where Equinor joins Austrian operator OMV.

Alliance model

This could delay a decision on development of Fogelberg until this autumn.

Spirit Energy Norway chief executive Gro Kyllingstad told Upstream that a Fogelberg development will be executed in an alliance with Subsea 7, TechnipFMC and DNV GL (which from 1 March will be called DNV) after it signed a five-year frame agreement with the trio.

“We are working towards a development of the Fogelberg discovery with the alliance model, which is attractive for both supplier companies and oil companies,” Kyllingstad said.

According to Kyllingstad, the idea behind the alliance model is that open and ongoing co-operation will pay off in the long term.

“Predictability is decisive for good results, and I am confident that our model enables us to deliver projects with high quality with the price level,” she said.

The agreement follows the same co-operation model these players formed in 2015 for development of the Oda discovery in the North Sea, which was Spirit’s first development project in Norway.

“These supplier companies were involved in the Oda project from start to finish. Together we defined the project, decided on the best solutions and how to execute the project as effectively as possible,” Kyllingstad said.

Continued investment on NCS

Half of Spirit’s current production of 125,000 barrels of oil equivalent comes from Norway.

"We have invested heavily in Norway through many years," Kyllingstad said.

Since 2016, Spirit has invested Nkr12.7 billion ($1.45 billion) in Norway and the company plans to keep investments high in the country. According to Kyllingstad, Spirit will invest an additional Nkr14.7 billion out to 2025.

Spirit is a partner in Wintershall Dea’s Nova subsea oil project, which will be tied back to Neptune Energy’s Gjoa platform.

It is also part of an Equinor-led quartet that is looking to include Equinor’s Sigrid and Natalia discoveries along with four other finds through subsea tie-backs to the Aasgard field in the Norwegian Sea. The estimated investment for this scheme is up to Nkr10 billion.

The Wintershall Dea-operated Bergknapp discovery is another potential development project for Spirit as partner.

* This story has been updated from an earlier version to correct the names of the Sigrid and Natalia discoveries and the operator of the Nova project, Wintershall Dea

Field Development

Spirit Energy signs frame deals with contractor trio for Norway offshore project