Equinor’s Heidrun field permitted to increase gas output -NPD

OSLO, Nov 18 (Reuters) – The Equinor-operated (EQNR.OL) Heidrun field in the Norwegian Sea was permitted to increase natural gas output at the expense of oil, as European gas prices soared, the Norwegian Petroleum Directorate said on Thursday.

“Somewhat increased gas production for sale has led to delayed oil production,” a spokesperson said in an email to Reuters.

Equinor has previously won permission from the Norwegian authorities to increase natural gas production from its Troll and Oseberg fields in the North Sea, which also serve as offshore gas storages.

The company has also decided to increase gas exports from its Gina Krog field, also in the North Sea, instead of injecting it back into the reservoir to pump out more oil.

“Estimates show that a very small part of oil production (at Gina Krog) is affected… If gas prices fall sharply, the increased gas exports will stop,” the spokesperson said.

Norwegian authorities regulate oil and gas production to ensure the maximum value creation and recovery rates in the long-term.

About a quarter of all natural gas produced on the Norwegian continental shelf is injected back into reservoirs, according to the NPD data.

Norway is Europe’s second-largest natural gas supplier after Russia.

Reporting by Nerijus Adomaitis; Editing by Kirsten Donovan

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