Equinor and Aker BP have agreed to collaborate on the development of tight reservoirs on the Norwegian Continental Shelf (NCS), aiming to unlock resources that have so far proven difficult to develop economically.
The partnership will focus on technology development, standardization, and cooperation across multiple projects. The companies said the objective is to improve the profitability of tight oil and gas developments while increasing overall recovery from these assets.
According to the companies, the NCS contains significant volumes of tight oil and gas, where hydrocarbons flow only slowly through low-permeability rock. The Norwegian Offshore Directorate (NOD) estimates that mapped tight reservoirs hold a recovery potential of about 2.8 billion BOE, a volume on par with the expected recoverable resources of the Johan Sverdrup field.
“By viewing our portfolios in context and developing common solutions, we can reduce costs and develop and qualify technology faster. Together, we can make challenging resources profitable. This benefits all partners and society at large,” said Kjetil Hove, Equinor’s executive vice president for exploration and production in Norway.
Equinor noted that many of the nearly 90 discoveries awaiting development approval are located in tight reservoirs. Using conventional development methods alone, however, few of these fields are considered commercially viable.
It is estimated that the recovery rate of tight resources along the NCS is 20% for oil and 30% for gas in limestone reservoirs. In tight sandstone, the average recovery drops to 12% for oil and 25% for gas.
The NOD has encouraged operators to increase collaboration on technology development, standardization, and knowledge sharing to help address these challenges.
“Scale is key. By considering opportunities across both portfolios, we can create a stronger basis for activity, accelerate learning, and reduce costs. Together, we can develop solutions that can be applied across multiple projects. We are starting the work immediately,” said Karl Johnny Hersvik, CEO of Aker BP.
The collaboration will cover prospects, discoveries, and projects across the NCS. The companies will contribute opportunities from their respective portfolios and identify where joint technology development, standardization, and knowledge sharing can create the greatest value.
The initiative will also include resource maturation and well-stimulation technologies. The companies said their ambition is to establish a predictable level of activity that supports a competitive supply chain with the expertise and capacity required to accelerate development of tight-reservoir discoveries.
The partnership will be managed through a joint governance structure supported by multidisciplinary working groups drawn from both companies.