The cost of developing Total’s Martin Linge oil and gas field off the coast of Norway has risen by a further 1.4 billion Norwegian crowns (US$177 million) in the last year to 41.3 billion, the government’s 2018 budget showed Oct. 12.
The cost estimate has risen by a total of 42% since the original plan was presented in 2012.
The latest increase followed a fatal accident in May at the South Korean yard building the platform, which has delayed startup by a year to 2019.
Statoil’s Johan Sverdrup and Wintershall’s Maria oilfield projects had the biggest fall in development costs.
Johan Sverdrup Phase 1 costs fell by 6.9 billion crowns to 102.6 billion, while Maria’s costs were down by 2.9 billion crowns at 13.1 billion crowns. The figures were down 18% and 19% respectively from original 2015 estimates.
Overall costs for 12 new offshore projects, including the Polarled pipeline, were down by 10.5 billion crowns from a year ago, or about 5% down from the original estimates.
The Norwegian government said in the budget document it expected Johan Sverdrup’s partners, which also include Aker BP, Lundin and Maersk’s oil and gas arm, acquired by Total in August, to make the final investment decision on the field’s Phase 2 development in third-quarter 2018.
Statoil is also expected to present plans for the Arctic Johan Castberg oilfield development project and the expansion of the Snorre Field by the end of 2017.
Oil industry investments are seen rising by 2.2% in 2018 after having declined for the last three years, the government said in its revised economic outlook Oct. 12.
($1 = 7.9062 Norwegian crowns)