Equinor, Ithaca Energy to progress Phase 1 of Rosebank field in UK

Norway’s oil giant Equinor and the UK’s oil and gas operator Ithaca Energy have taken the final investment decision to progress Phase 1 of the Rosebank development on the UK Continental Shelf (UKCS), investing $3.8 billion, Equinor announced on Wednesday.

The Rosebank field is located around 130 kilometers northwest of Shetland at a water depth of approximately 1,100 meters. Its total recoverable resources are estimated at around 300 million barrels of oil, while approximately 245 million barrels of oil could be supplied only from Phase 1.

The field will be developed with subsea wells tied back to a redeployed Floating Production Storage and Offloading vessel (FPSO), with start-up planned between 2026 and 2027.

The West of Shetland Pipeline system will be used to export gas to mainland Scotland, while shuttle tankers will transfer oil to refineries.

The North Sea Transition Authority (NSTA), which has the authority to issue licenses and regulate oil and gas-related activity in the UK, gave its approval for the field’s development.

According to an independent socioeconomic report by Wood Mackenzie and Voar Energy, Rosebank is estimated to create £8.1 billion of total direct investment over the lifetime of the field, of which 78% is likely to be invested in UK-based businesses.

It is also expected to support around 1,600 jobs during the height of the construction phase of the project and will continue to support approximately 450 UK-based jobs during the lifetime of the field.

‘Developing the Rosebank field will allow us to grow our position as a broad energy partner to the UK while optimizing our oil and gas portfolio and increasing energy supply in Europe,’ Executive Vice President of Projects, Drilling and Procurement at Equinor, Geir Tungesvik, was quoted as saying in the statement.

‘Rosebank provides an opportunity to develop a field within the UK Continental Shelf, which will bring significant benefits to Scotland and the wider UK,’ Tungesvik added.

The Rosebank oil and gas field is being developed under the North Sea Transition Deal, a contract between the UK government and the offshore industry that acknowledges there is a continued need for oil and gas and that this remaining demand must be met with the lowest emissions possible.

Therefore, the FPSO has been designed to be electrification-ready, and the company is collaborating with government and industry to pursue a regional solution for power from shore to Rosebank and nearby fields to minimize carbon emissions from production.

‘We know that the world needs to transition to new, cleaner energy systems and our broad energy investments into the UK support this. And while we do this, there is going to be a continued need for oil and gas, which currently meet 76% of the UK’s energy needs,’ Senior Vice President of Upstream at Equinor in the UK, Arne Gurtner, said.

‘Our decision to progress the Rosebank development is the result of work and collaboration by our employees, partners, government, regulators, and other stakeholders to ensure that this development is able to help meet this ongoing need with the lowest carbon footprint possible,’ Gürtner added.

• The North Sea Transition Authority (NSTA)
• UK Continental Shelf (UKCS)