Equinor and Ithaca Energy to invest $3.8 billion in UK’s largest untapped offshore field

Norwegian oil and gas company Equinor, in partnership with UK-based Ithaca Energy, announced their unanimous decision to advance Phase 1 of the Rosebank development project within the UK Continental Shelf.

Situated approximately 130 kilometres northwest of Shetland, the Rosebank field is renowned as the largest untapped reserve in the UK. Initial estimations suggest recoverable resources totalling around 300 million barrels of oil across Phase 1 and Phase 2, with Phase 1 targeting an estimated 245 million barrels of oil.

The field will be developed with subsea wells tied back to a redeployed Floating Production Storage and Offloading vessel (“FPSO”), with first production expected in 2026-2027. The Rosebank field will produce in excess of 21 MMSCF of natural gas every day, the equivalent to the daily use of Aberdeen City.

Equinor serves as the field’s operator, holding an 80% stake, while Ithaca Energy possesses the remaining 20% interest.

Geir Tungesvik, executive vice president Projects, Drilling and Procurement at Equinor: “Developing the Rosebank field will allow us to grow our position as a broad energy partner to the UK, while optimising our oil and gas portfolio, and increasing energy supply in Europe. Rosebank provides an opportunity to develop a field within the UK Continental Shelf which will bring significant benefits to Scotland and the wider UK.”

“The Rosebank development has been optimised to reduce carbon emissions, in line with the North Sea Transition Deal, with the FPSO designed to be electrification-ready. Ithaca Energy and Equinor continue to collaborate with government and industry stakeholders to pursue a regional solution for power from shore to Rosebank and nearby fields with the objective of minimising carbon emissions from production,” Ithaca Energy siad.

With electrification, it is estimated that the Rosebank lifetime upstream CO2 intensity would decrease from 12kg to about 3kg CO2/boe, Equinor said.

Gilad Myerson, Executive Chairman, Ithaca Energy, commented: “We are delighted to announce the decision to move forward with the Rosebank development alongside Equinor. Rosebank stands as the largest undeveloped field in the UK, and with the receipt of development consent from the NSTA, we are now poised to embark on a journey that will not only provide critically important domestic energy but also ignite substantial economic impact. The Rosebank project will create thousands of jobs and contribute significantly to securing the UK’s energy needs for many years to come.”

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