Equinor is set to strengthen its position in the Norwegian Sea's Halten area by acquiring Shell's equity and operatorship in the Linnorm discovery. The agreement involves Equinor acquiring a 30% interest in PL 255, which encompasses the Linnorm discovery, conditional upon assuming operatorship from A/S Norske Shell. The transaction is anticipated to conclude in the first quarter of 2024, pending approval from Norwegian authorities.

The Linnorm discovery, identified in 2005, stands as the largest undeveloped gas discovery on the Norwegian Continental Shelf (NCS). Estimated to contain approximately 25-30 billion m³ of recoverable gas resources, Linnorm surpasses the remaining reserves of producing fields like Aasta Hansteen, Martin Linge, and Gina Krog.

Kjetil Hove, Executive Vice President for Exploration and Production Norway at Equinor, stated, "Through this acquisition, Equinor will deepen our position in the Halten area, in line with our strategy to optimize our portfolio on the NCS. We know this area well, where we already have producing hubs and still see attractive opportunities."

Equinor aims to assess the feasibility of a tie-back for Linnorm to the Equinor-operated Kristin or Åsgard B installations, emphasizing the company's commitment to unlocking the significant gas resources for the European market.

Hove added, "A lot of good work has already been done to mature Linnorm. Together with our partners, we will build on this and develop the Linnorm gas resources for the European market."

The deal, subject to regulatory approval, underscores Equinor's strategic move to optimize its portfolio in the Norwegian Sea. The partners in PL 255 include A/S Norske Shell (30%, operator until the transaction is completed), Petoro (30%), Equinor Energy (20%), and TotalEnergies EP Norge AS (20%). Marianne Olsnes, Managing Director of Shell in Norway, expressed satisfaction with the collaborative efforts and affirmed Shell's commitment to maintaining a substantial upstream position in Norway.