# ConocoPhillips plans $1.1 billion investment as Norway oil sector heats up
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-09
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: ConocoPhillips submits $1.10 billion plan for Eldfisk North
Meta Description: ConocoPhillips plans to develop Eldfisk North in the Norwegian North Sea for $1.10 billion, the first in a series of new petroleum projects in Norway this year.
URL: https://financedigest.com/conocophillips-plans-1-1-billion-investment-as-norway-oil-sector-heats-uphtml

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By Nora Buli and Nerijus Adomaitis

SANDEFJORD, Norway (Reuters) -ConocoPhillips submitted on Monday a plan to develop an oil discovery in the Norwegian North Sea for 10.5 billion Norwegian crowns ($1.10 billion), the first of an expected rush of new petroleum projects to be launched in Norway this year.

Known as Eldfisk North, the development is part of the wider Ekofisk area, where ConocoPhillips has pumped hydrocarbons for more than 50 years. The U.S. [operator said the new reserves are expected to come on stream](https://www.financedigest.com/denmark-invites-nord-stream-operator-to-help-salvage-unidentified-object.html "Denmark invites Nord Stream operator to help salvage unidentified object") in 2024.

The Eldfisk North reservoir contains mostly oil and some gas and is [estimated to hold between 50 million](https://www.financedigest.com/spotifys-monthly-active-users-top-500-million-beat-estimate.html "Spotify’s monthly active users top 500 million, beat estimate") and 90 million barrels of oil equivalent, ConocoPhillips said.

During the COVID-19 pandemic, Norway introduced [tax incentives for fields covered by development plans](https://www.financedigest.com/uk-drops-plan-to-tax-sovereign-wealth-funds.html "UK drops plan to tax sovereign wealth funds") introduced by the end of 2022, part of the country’s bid to extend the life of its oil and gas industry for decades.

As a result, the country [expects to receive “a large number” of development plans](https://www.financedigest.com/british-pm-sunak-expected-to-shelve-plans-to-privatise-channel-4-ft.html "British PM Sunak expected to shelve plans to privatise Channel 4 -FT") in 2022, Minister of Petroleum and Energy Terje Aasland told Reuters on the sidelines of an energy conference.

This is an exciting year, and shows that the [oil tax](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") package is yielding results,” he said.

Among [plans likely to be presented this year](https://www.financedigest.com/3-factors-to-plan-for-in-2017-a-year-like-none-other.html "3 Factors to Plan for in 2017, A Year Like None Other") is Equinor’s Wisting discovery in the Arctic Barents Sea, which is set to become the world’s northernmost oilfield.

I’ve spoken to them and they are optimistic with regards to the [progression of the plans,”](https://www.financedigest.com/hungarian-instant-payments-project-progressing-as-planned.html "Hungarian instant payments project progressing as planned") Aasland said of Equinor.

An Equinor spokesperson confirmed the company remains on [track to submit a development plan](https://www.financedigest.com/ferrari-enel-x-plan-solar-plant-near-fiorano-test-track.html "Ferrari, Enel X plan solar plant near Fiorano test track") in 2022. The company said late last year that Wisting could [cost some 75 billion](https://www.financedigest.com/australias-nuclear-submarine-plan-to-cost-up-to-245-billion-by-2055-defence-official.html "Australia’s nuclear submarine plan to cost up to 5 billion by 2055 -defence official") Norwegian crowns to develop.

The Eldfisk North [plan is meanwhile subject to customary approvals](https://www.financedigest.com/canada-pm-trudeau-planning-snap-election-seeks-approval-for-covid-response-sources-2.html "Canada PM Trudeau planning snap election, seeks approval for COVID response – sources") from Norwegian authorities.

We are going to process the development [plan as fast as possible,”](https://www.financedigest.com/uniper-rescue-plan-takes-shape-with-price-rises-possible.html "Uniper rescue plan takes shape, with price rises possible") Aasland said.

Ekofisk is operated by ConocoPhillips, which holds a 35.1% stake, while TotalEnergies owns 39.9%, Vaar Energi 12.4%, Equinor 7.6% and Petoro 5%.

Norway is western [Europe’s largest oil](https://www.financedigest.com/u-s-oil-exports-to-europe-hit-record-in-march-on-steep-discounts.html "U.S. oil exports to Europe hit record in March on steep discounts") and gas producer, pumping around four million barrels of oil equivalent per day, but some of its major fields face depletion in the coming decade.

($1 = 9.5506 Norwegian crowns)

(Reporting by Nerijus Adomaitis and Nora Buli, editing by Terje Solsvik, Kirsten Donovan)


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