Norway’s government approved expansion plans for the country’s second largest gas field, Ormen Lange, as well as development plans for the Frosk and Tommeliten A discoveries, Reuters reported Friday.
The expansion of Ormen Lange, which is operated by Shell (NYSE:SHEL), would increase gas extraction by as much as 40B cm with start-up expected in 2025, the oil and energy ministry said.
Expected recoverable reserves at Tommeliten A are estimated at 21M cm of oil equivalent, with production starting in 2024; the field is operated by ConocoPhillips (COP), which it co-owns with PGNiG, Vaar Energi and TotalEnergies (TTE).
Recoverable reserves at the Frosk discovery are estimated at 1.5M cm of oil equivalent; AkerBP is the operator with Vaar Energi as the other stakeholder.
“Poor management decisions make for a steep discount” in Shell (SHEL) shares, but the “macroeconomic situation points to years of solid cash flows from upstream oil and gas and Shell’s LNG shipping business,” Harrison Schwartz writes in a bullish analysis posted on Seeking Alpha.