Rosebank Phase 1 Progresses with Equinor, Ithaca $3.8B FID

Equinor and Ithaca Energy have made final investment decision to invest US$3.8 billion for the progression of Phase 1 of the Rosebank development field on the U.K. Continental Shelf following consent on Sept.2 7 from the North Sea Transition Authority for its development, Equinor and Ithaca announced in separate press releases.  

The field, in approximately 1,100 m of water depth, holds an estimated total recoverable resources are estimated to be around 300 MMbbl of oil. Phase 1 will target estimated 245 MMbbl of oil.

Rosebank will be developed with subsea wells to tie back to an FPSO with an approximate capacity of 70,000 bbl/d of oil. Startup is planned for 2026-2027. Oil produced from the field will be transported via shuttle tankers to refineries and gas will be exported to Scotland through the West of Shetland pipeline system.

The field complies with the North Sea Transition Deal, which stipulates that as the U.K. moves away from fossil fuel energy, remaining oil and gas demand must be met with the lowest emissions possible.

"We know that the world needs to transition to new, cleaner energy systems and our broad energy investments into the U.K. support this,” said Arne Gürtner, senior vice president of upstream at Equinor in the U.K.. “And while we do this there is going to be a continued need for oil and gas, which currently meets 76% of the U.K.’s energy needs.”

Several contracts have been awarded in support of Rosebank’s Phase 1 development. Equinor awarded TechnipFMC an integrated engineering, procurement, construction and installation (iEPCI) contract by Equinor for the Rosebank project, Technip said in a press release Sept. 27. Under the contract, TechnipFMC will manufacture and install subsea production systems, flexible and rigid pipe and umbilicals.

“We have collaborated with Equinor on Rosebank since the concept stage in 2019. Using a single interface, we tied together all the work scopes, leveraging our iEPCI model to reduce project complexity,” Jonathan Landes, president of subsea at TechnipFMC, said in the release. “We are proud that our track record and proven technology have earned Equinor’s confidence that we will deliver this significant project.”

Odjfell Drilling has also been awarded a rig contract, with an estimated value of $328 million including options, integrated services and other modifications, according to the companies’ press releases. Altera was also awarded a bareboat charter and an operations and maintenance contract related to the Petrojarl Knarr FPSO, set to be deployed for Rosebank on a firm contract for nine years, with options for up to 25 years.

“This development further strengthens our international business, and we look forward to collaborating closely with our partner and suppliers to develop and operate Rosebank with the lowest possible carbon footprint while bringing the maximum value to society in the shape of U.K. investment, local jobs and energy security,” Philippe Mathieu, executive vice president for Equinor’s Exploration and Production International, said in Equinor’s release.