Equinor raises Snøhvit Future project cost estimate to $2.77 billion
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Equinor raised the cost estimate for the Snøhvit Future project to $2.77 billion (NOK 26.5 billion) in 2026 value. This updated figure is higher than the $2.1 billion (NOK 20 billion) estimate announced last December. The updated estimate was submitted to Norway's Ministry of Energy.
From oedigital.com
Why it matters
The cost increase is attributed to greater-than-expected complexity and operational issues, including challenges at the Hammerfest LNG plant and difficult rock conditions in the power cable tunnel. The project's timetable remains unchanged, with onshore compression scheduled for 2029 and electrification in 2030.
Equinor, Vår Energi, Petoro, and TotalEnergies hold stakes in a license for drilling operations on the Norwegian Continental Shelf.
From oedigital.com
Who's involved
- EquinorOperates the Snøhvit partnership with a 36.79% interest.
- Vår EnergiHolds a 12% interest in the Snøhvit partnership.
- PetoroHolds a 30% interest in the Snøhvit partnership.
- TotalEnergies EP NorgeHolds an 18.4% interest in the Snøhvit partnership.
- Ministry of EnergyReceived the updated cost estimate for the project.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- EquinorSpeculative
Equinor might face increased capital expenditure for the Snøhvit Future project.
- PetoroSpeculative
Petoro could share financial risk via the Snøhvit partnership due to cost escalation.
- Vår EnergiSpeculative
Vår Energi may face shared financial risk via the Snøhvit partnership due to cost escalation.
- TotalEnergies EP NorgeSpeculative
TotalEnergies EP Norge could face shared financial risk via the Snøhvit partnership due to cost escalation.
- HammerfestSpeculative
Hammerfest might see operational costs rise due to challenges at the LNG plant.
Keep exploring
Part of
Equinor, Vår Energi, Petoro, and TotalEnergies hold stakes in a license for drilling operations on the Norwegian Continental Shelf.Also in this story
- Equinor, Vår Energi, Petoro, and TotalEnergies hold stakes in a license for drilling operations on the Norwegian Continental Shelf.
- Transocean secured a new drilling assignment from Equinor for operations on the Norwegian Continental Shelf.
- Following the Ukraine invasion, Norway is leveraging its resources, with Vår Energi exploring new reserves and Equinor boosting oil production.
- Equinor found new resources near the Troll field and is maximizing value on the Norwegian Continental Shelf.
The entities involved
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Equinor
Norwegian energy company; developer of Empire Wind 1 (810 MW) in NYISO — direct competitor to Avangrid offshore wind.
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Vår Energi
Norwegian oil and gas company
Nothing else this week.
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Petoro
Norwegian state-owned company
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TotalEnergies EP Norge
Norwegian oil and gas company
Nothing else this week.