Scotland’s Lerwick Harbour has been selected as the main marine support hub for Equinor’s first phase of development of the Rosebank oil and gas field.
Contractor TechnipFMC is responsible for integrated engineering, procurement, installation and construction for Rosebank. The subsea production systems, umbilicals, risers and flowlines it manufactures will be delivered, stored and mobilised at the deepwater port.
“It is another significant opportunity for Lerwick and Shetland to continue serving the energy sector,” said Calum Grains, Lerwick Port Authority chief executive. “We are perfectly positioned to support this project, both in proximity to the field, bringing savings in sailing times, fuel and emissions, and minimising vessel turnaround time, and with our ready-made facilities, including extensive quaysides and laydown.
Equinor and partner, Ithaca Energy, are investing USD3.8 billion in Rosebank, located around 130 km north-west of Shetland, with the largest untapped reserves in UK waters. Subsea wells will be tied back to a redeployed FPSO, Petrojarl Knarr, with start-up from phase one planned in 2026-2027.
The North Sea Transition Authority (NSTA) granted consent for the development of the field on September 27. Total recoverable resources are estimated at around 300 million barrels of oil, with the first phase targeting estimated 245 million barrels of oil. Oil will be transported to refineries by shuttle tankers, while gas will be exported through the West of Shetland Pipeline system to mainland Scotland.
The Rosebank project has come in for criticism from MPs and other parties, which state that the development could produce 200 million tonnes of CO2 and do nothing to lower domestic energy costs. Equinor said the FPSO has been designed to be electrification ready and is collaborating with government and industry to pursue a regional solution for power from shore to Rosebank and nearby fields to minimise carbon emissions from production. However, according to the BBC, when the project is commissioned, the field will not be electrified. Electrification of oil and gas activities, critics argue, is a key element of the UK’s net-zero strategy.
“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 meets 76 percent of the UK’s energy needs. 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,” said Arne Gürtner, senior vice president upstream at Equinor in the UK.
The oil produced will be sold on the world open market, which critics of the project argue will not help to reduce domestic energy bills.
