Equinor and Aker BP have launched a strategic collaboration to develop challenging oil and gas discoveries in tight reservoirs on the Norwegian Continental Shelf (NCS), targeting resources with an estimated recovery potential of around 2.8 billion barrels of oil equivalent.
The partnership will focus on technology development, standardization and knowledge sharing across multiple projects to reduce costs, improve recovery rates and make discoveries that are currently too expensive to develop commercially viable.
The Norwegian Offshore Directorate estimates that mapped tight reservoirs on the NCS have a recoverable resource potential comparable to the expected recoverable resources of the Johan Sverdrup field.
Many of the approximately 90 discoveries awaiting development approval are located in tight reservoirs, where low rock permeability restricts the flow of oil and gas, limiting the effectiveness of conventional recovery methods.
“By taking a portfolio-wide approach and developing common solutions, we can reduce costs and accelerate technology development. This can make more of these discoveries commercially viable. The benefits will be shared by licence owners and society alike,” said Kjetil Hove, Executive Vice President for Exploration & Production Norway at Equinor.
The collaboration will cover prospects, discoveries and projects across the NCS, with both companies contributing opportunities from their respective portfolios to identify areas where joint solutions could generate the greatest value.
The work will also include resource maturation and well stimulation technologies, with the aim of establishing a predictable level of activity to support the development of a competitive supply chain with the necessary expertise and capacity.
“Scale is the key. By considering opportunities across both portfolios, we can create the basis for increased activity, faster learning and lower costs. Together, we can develop solutions more quickly and deploy them at a larger scale. We are starting this work immediately,” said Karl Johnny Hersvik, Chief Executive Officer of Aker BP.
The partnership will be managed through a joint governance structure and multidisciplinary working groups involving representatives from both companies.
According to the Norwegian Offshore Directorate's 2019 estimates, mapped tight reservoirs on the NCS contain between 12 billion and 13 billion barrels of oil and gas in place, although recovery rates remain low.
Estimated average oil recovery rates range from 12% in sandstone reservoirs to 20% in limestone reservoirs, while corresponding gas recovery rates average 25% and 30%, respectively.
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