The Norwegian government has approved the investment of a combined $2.5 billion worth of new field expansion activity at the Ormen Lange, Alvheim and Ekofisk offshore fields.

At Ormen Lange, the Ministry of Petroleum & Energy approved the development plan for phase three, which aims to increase gas production by up to 40 billion cubic meters, with an expected start up in 2025.

The ministry indicated phase three will feature subsea compression and the transmission of power over long distances under water. The phase three investment will total about Nkr11.7 billion ($1.1 billion).

“This project will increase recovery from the Ormen Lange field… at the same time as gas production from the field is accelerated,” said Minister of Petroleum & Energy Terje Aasland.

“This project helps to maintain the gas supply from Norway to our friends in Europe from the middle of this decade.”

The Ormen Lange field is operated by Shell on 17.8134% with partners Petoro holding 36.4850%, Equinor 25.3452%, PGNiG 14.0208% and Vaar Energi holding 6.3356%.

The ministry also approved the development plan for the Frosk field, which will be tied in to the floating production, storage and offloading vessel at the Alvheim field.

Two new subsea wells will generate production in 2023 at an estimated capital cost of Nkr2 billion. Recoverable reserves are estimated at about 9 million barrels of oil and 80 million cubic meters of gas.

The project owners are operator Aker BP on 65%, Vaar Energi on 20% and Lundin Energy on 15%, although Lundin was acquired by Aker BP on 30 June.

Finally, the ministry approved the development plan for ConocoPhillips' Nkr12.5 billion Tommeliten A project, which will be a subsea tie-back to Ekofisk.

A marginal part of the field lies on the UK continental shelf, so the project must also be approved by the UK government.

Expected recoverable reserves are estimated at about 132 million barrels of oil equivalent, of which slightly more than three quarters is gas. Start up is expected in 2024.

"This development is an example of good neighborliness. Together with our companies and friends in the UK, we now realize the values ​​in one of our older finds," said Aasland.

On the Norwegian side of the border, the co-owners are ConocoPhillips on 28.1355%, PGNiG on 42.1978%, TotalEnergies on 20.143% and Vaar Energi on 9.0907%.

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