Norway Raises Martin Linge Oil and Gas Project Cost Estimate by $865M

SEATTLE (Oil Monster): Norway’s Martin Linge offshore oil and gas project will cost $865 million more than previously expected and take an extra half year to come on line, the government and operator Equinor announced on Monday.

The government has also raised its estimate for redevelopment of the Njord field in the Norwegian Sea by 4.4 billion Norwegian crowns ($482 million) to 20.3 billion.

The Martin Linge field is expected to cost 56.1 billion crowns, up from an estimate of 47.1 billion a year ago, budget documents released on Monday showed.

On an inflation adjusted basis, the cost increase was 7.9 billion crowns ($865 million), Equinor said, adding that start-up was now expected in the third quarter of 2020 instead of the first quarter.

“Martin Linge is a complex project, and the scope of work has increased. This means increased costs and somewhat more time before we can start production,” the state-controlled oil company said in a statement.

When French company Total submitted development plans to the Norwegian government in 2012, development of Martin Linge was expected to cost 30 billion crowns.

The North Sea field holds an estimated 256 million barrels of oil equivalents.

 Courtesy: www.reuters.com