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Shell (RDS.A) to Proceed With Ormen Lange Gas Project in Norway
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Royal Dutch Shell plc made a final investment decision for its wet gas subsea compression project at the Ormen Lange gas and condensate field, located in the Norwegian Sea.
The company submitted its plan for development and operation for the Ormen Lange field to the Ministry of Petroleum and Energy of Norway.
Ormen Lange is the second-largest gas field in Norway. Shell operates with a 17.8% ownership interest in the field. The remaining partners include Petoro and Equinor ASA (EQNR - Free Report) , with 36.4% and 25.3% interests in the field, respectively, while INEOS and Vår Energi own the rest.
The project is intended to add additional 30-50 billion cubic meters of natural gas, which will be supplied to the Norwegian gas export system. This would increase the overall gas recovery rate of the Ormen Lange field from 75% to 85%.
Per plans, a wet gas compressor system will be established at a depth of 900 meters on the seabed beside the wellheads to increase the reservoir’s gas flow into the wells. The distance between land and seabed compressors will be a new length record for a power cable for underwater compressors.
This is the first underwater compression system, which will be developed from an offshore platform with no means of support. The solution is developed and will be delivered from Norway with new technology based on Norwegian innovations for a global market. The gas from the Ormen Lange field moves to the Nyhamna processing plant in Aukra municipality, where it is processed for further exports.
Notably, the project would bring an additional income of more than NOK 40 billion to Norway. Deepwater and the seabed conditions made development difficult, and the project is a meaningful illustration of what is needed on the Norwegian Continental Shelf in the future. It will provide increased recovery from active fields, while developing, qualifying and deploying new technology.
Company Profile & Price Performance
Shell is one of the primary oil majors — a group of U.S. and Europe-based big energy multinationals. The company is fully integrated, as it participates in every aspect related to energy from oil production to refining and marketing.
Shares of the company have outperformed the industry in the past six months. The stock has gained 13.7% compared with the industry’s 10.3% growth.
Image: Bigstock
Shell (RDS.A) to Proceed With Ormen Lange Gas Project in Norway
Royal Dutch Shell plc made a final investment decision for its wet gas subsea compression project at the Ormen Lange gas and condensate field, located in the Norwegian Sea.
The company submitted its plan for development and operation for the Ormen Lange field to the Ministry of Petroleum and Energy of Norway.
Ormen Lange is the second-largest gas field in Norway. Shell operates with a 17.8% ownership interest in the field. The remaining partners include Petoro and Equinor ASA (EQNR - Free Report) , with 36.4% and 25.3% interests in the field, respectively, while INEOS and Vår Energi own the rest.
The project is intended to add additional 30-50 billion cubic meters of natural gas, which will be supplied to the Norwegian gas export system. This would increase the overall gas recovery rate of the Ormen Lange field from 75% to 85%.
Per plans, a wet gas compressor system will be established at a depth of 900 meters on the seabed beside the wellheads to increase the reservoir’s gas flow into the wells. The distance between land and seabed compressors will be a new length record for a power cable for underwater compressors.
This is the first underwater compression system, which will be developed from an offshore platform with no means of support. The solution is developed and will be delivered from Norway with new technology based on Norwegian innovations for a global market. The gas from the Ormen Lange field moves to the Nyhamna processing plant in Aukra municipality, where it is processed for further exports.
Notably, the project would bring an additional income of more than NOK 40 billion to Norway. Deepwater and the seabed conditions made development difficult, and the project is a meaningful illustration of what is needed on the Norwegian Continental Shelf in the future. It will provide increased recovery from active fields, while developing, qualifying and deploying new technology.
Company Profile & Price Performance
Shell is one of the primary oil majors — a group of U.S. and Europe-based big energy multinationals. The company is fully integrated, as it participates in every aspect related to energy from oil production to refining and marketing.
Shares of the company have outperformed the industry in the past six months. The stock has gained 13.7% compared with the industry’s 10.3% growth.
Zacks Rank & Other Stock to Consider
Shell currently carries a Zack Rank #2 (Buy).
Some other top-ranked players in the energy space are Oceaneering International, Inc. (OII - Free Report) and Schlumberger Limited (SLB - Free Report) , each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oceaneering’s earnings for 2021 are expected to rise 25.9% year over year.
Schlumberger’s earnings for 2021 are expected to increase 45.1% year over year.