Norway approves 10-year lifetime extension for Troll B facility

The Norwegian authorities have granted consent to state-controlled Equinor to operate the Troll B facility in the North Sea for a further 10 years, the Norwegian Petroleum Directorate (NPD) said Monday.

Extension of Troll B's lifetime to 2030 is one of the potential solutions for further developing gas production from the Troll Vest gas cap -- the Troll phase three project -- the NPD said.

Troll phase 3 has been touted as the main project offshore Norway to keep gas production levels -- currently at around 115 Bcm/year -- stable over the next two decades.

"Extended operation of Troll B secures a foundation for good resource management of significant oil and gas resources from the gigantic Troll field," Arvid Osthus, the NPD's assistant director for development and operations, said in a statement.

The extended lifetime for Troll B also includes pipelines for oil and gas that were part of the field development plan.

The current consent for Troll B -- which started operations in September 1995 -- expires in September this year.

The Petroleum Safety Authority has also approved the extended operation and has said that Troll B can be operated safely until the end of the license period.

This does, however, require maintenance and modifications according to the lifetime extension plan, the NPD said.

Phase 3 plans

Equinor -- which could not be reached for immediate comment on the Troll B lifetime extension -- has said previously it plans to start gas production from Troll phase 3 in the first half of 2021.

It submitted the development plan for Troll phase 3 -- effectively taking a final investment decision on the project -- in July 2018.

Capital expenditure for the project has been estimated at NOK7.8 billion ($960 million) which will help extend the productive life of the Troll field beyond 2050.

The Troll partners are Equinor (30.58%), Norwegian state holding company Petoro (56%), Shell (8.1%), France's Total (3.69%) and US major ConocoPhillips (1.62%).

Equinor is increasingly prioritizing gas output from Troll -- easily Europe 's biggest gas field -- with gas injection for oil recovery seen as declining in importance.

Troll is a significant supplier of gas to the European market and can meet 7%-8% of Europe's total daily gas consumption.

The field has a production permit of 36 Bcm for Gas Year 19, which started on October 1, 2019 and ends September 30, 2020.

Troll -- which along with Oseberg is one of Equinor's swing fields that it can turn up or down depending on prevailing gas prices -- has seen significant commercial optimization over the past year due to the slump in European gas prices.