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Contract award for ‘groundbreaking’ all-electric subsea project

The installation of a new all-electric subsea system offshore Norway aims to help fast-track electrification of the global subsea sector as part of efforts to decarbonise the oil and gas sector. However, new analysis by the International Institute for Sustainable Development (IISD) suggests the sector is in danger of increasing emissions, with oil and gas exploration surging to pre-COVID levels.
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Equinor has awarded SLB OneSubsea a contract for the front-end engineering design (FEED) of a 12-well, all-electric subsea systems project in the Fram Sør field, offshore Norway. The project will use SLB OneSubsea’s standard subsea tree design, upgraded with a fully electrified power, control and actuation system. According to the company, the elimination of high-pressure hydraulic systems will enable operators to go further and deeper, improving production and making even marginal fields more viable.

 

The project is expected to fast-track wide-scale global adoption of electric subsea technology, setting new standards for increased operator control, subsea operational efficiency and reduced offshore emissions, the company claims.

 

This project is the first application to be implemented resulting from a joint industry project, which began in 2018 and involved close collaboration across major industry players to accelerate the development of breakthrough electrification technology through a standardised industry solution.  

 

‘Electrification is vital to the future of subsea operations in the energy transition,’ said Mads Hjelmeland, Chief Executive Officer, SLB OneSubsea. ‘This technology has effectively created the IoT [Internet of Things] for subsea trees, providing operators with improved control through live performance and condition monitoring.’

 

Oil and gas exploration surging to pre-COVID levels

In other news, oil and gas exploration is booming despite the agreement at COP28 to transition away from fossil fuels, according to the International Institute for Sustainable Development (IISD). The IISD has analysed global data collated by Rystad Energy and found that resources discovered in 2024 threaten to unleash 12bn tonnes of CO2 if fully exploited – more than the past four years’ discoveries combined.

 

The analysis shows that rich countries (the US, Canada, Australia, Norway, and the UK) have issued two thirds of the global number of oil and gas licences since 2020. China, Mexico and Russia are set to license the biggest volumes of oil and gas in 2H2024. It also found that companies spent $26.2bn looking for more oil and gas in the past 12 months with Equinor, Shell and BP being the biggest investors.

 

If all licensed fields are fully exploited, the world will extract more than twice as much oil and gas in 2040 as is compatible with a 1.5°C global warming limit. The ‘production gap’ is widening at its highest rate since 2015, the analysis shows.  

 

Olivier Bois von Kursk, Policy Advisor, IISD, says: ‘Ending oil and gas licensing is a logical next step in the transition to clean energy. Governments need to put the COP28 agreement into practice – particularly those with the wealth to drive investment into more sustainable sectors.’