Norway accelerates the development of offshore oil and gas projects
Norway is actively advancing the implementation of subsea connections in the oil and gas sector, which helps accelerate the development of new fields and reduce costs. Major operators such as Equinor plan to launch dozens of similar projects in the coming years, opening up new opportunities for contractors and strengthening the country's position in the global energy market.
Petrus
Norwegian operators and government agencies have previously noted that the future development of the country’s oil and gas sector on the continental shelf is closely linked to the implementation of subsea tie-back projects. In recent years, numerous such projects have been approved, with many more in the pipeline, signaling a shift in the industry from large standalone discoveries to integrating new fields with existing infrastructure.
Growing Popularity of Subsea Tie-Backs
Subsea tie-backs are becoming increasingly sought after worldwide, as they allow operators to quickly and cost-effectively boost production by utilizing existing offshore facilities such as platforms and floating production, storage, and offloading units. In Norway, more than 100 such projects are expected to be implemented over the next decade.
Plans of Leading Operators
Equinor, the country’s largest operator, plans to carry out over 65 subsea tie-back projects in the next ten years, most of which will be executed independently. Aker BP and Vaar Energi are also preparing dozens of similar projects.
Equinor has revised its operational model to accelerate field development and reduce costs. Now, decisions on several projects are made in packages, which speeds up the approval and implementation process. The company intends to launch “waves” of six to eight new subsea tie-back projects each year. The fields for the first three waves have already been identified and will be approved within the next 18 months, adding around 500 million barrels to the company’s recoverable reserves.
Project List
- First wave: Sissel, Troll West (increased gas production in the north), Brime/Nokken, Omega Sor, Tyrihans North.
- Second wave: Lofn/Langemann, Tonjer, Corvus, R-structure/Grimsnes, Troll B Extension, Atlantis, Garantiana, Lavrans (phase two), Skavl/Snofonn.
- Third wave: Rhombi, Peon, Linnorm, Njord North, Sierra Solberg, HEP, Breidablikk (phase two).
Changes in Approach and Standardization
In recent years, several subsea tie-back projects have been approved, including Fram Sor, Balder, Ekofisk Previously Produced Fields (PPF), Gjoa Subsea, and Isflak, all utilizing existing offshore facilities. There is a clear shift from megaprojects to tie-back projects with high internal rates of return and short payback periods.
The adoption of industry standards and solution unification enables long-term positioning, cost reduction, and shorter implementation timelines. The use of artificial intelligence for planning the placement of subsea templates and wells also accelerates decision-making processes.
Service Capacity and Contractors
Norway’s oilfield services sector currently has sufficient capacity to handle the planned workload, including brownfield projects, drilling rigs, and subsea equipment. Contractors can forecast the volume of upcoming work, contributing to market stability.
Aker Solutions, Norway’s largest energy services contractor, had previously expressed concerns about a potential decline in activity after the current series of major projects concludes. However, the anticipated growth in subsea tie-back projects opens new opportunities for equipment manufacturing and platform modifications.
Subsea equipment is produced at shipyards in Egersund and Sandnessjøen, while the Stord yard can supply modules. Ocean Installer, specializing in subsea cables and pipelines, also reports sufficient capacity for future projects.
Market Features and Partnerships
Norway’s SURF (Subsea, Umbilicals, Risers, and Flowlines) industry is dominated by four main companies: Ocean Installer, Subsea7, TechnipFMC, and occasionally DeepOcean. This creates economic benefits for smaller contractors and shipyards. Ocean Installer has a strategic partnership with Vaar Energi, Subsea7 with Aker BP, while Equinor typically holds competitive tenders.
In July, Equinor signed contracts for four first-wave fields: Troll West, Omega Sor, Tyrihans Nord, and Brime. Selected contractors include TechnipFMC, OneSubsea, Ocean Installer, and National Oilwell Varco.
Outlook and International Context
TechnipFMC notes that Norway remains one of the key markets with expected growth in orders. Promising regions for gas include East Africa, the Asia-Pacific, and the Eastern Mediterranean, while for oil, Latin America, the US Gulf of Mexico, and West Africa stand out. Norway plays a significant role in supplying gas to Europe thanks to the accelerated launch of shelf projects.
Main Contractors
Among the contractors operating in Norway are Aker BP’s alliance partners: Aker Solutions, Subsea7, Odfjell Drilling, SLB, Halliburton, ABB, Noble Corporation, Siemens Energy, and StimWell Services. Vaar Energi’s subsea project partners include OneSubsea, Ocean Installer, Subsea7, Halliburton, and COSL Drilling Europe.
