Rosebank

Location and Geology

The Rosebank oil and gas field is located approximately 130 kilometers north-west of the Shetland Islands in the Faroe-Shetland Channel, within the UK Continental Shelf (UKCS). The field spans across UKCS blocks 213/26b and 213/27a (licence P1026), block 205/1a (licence P1191), and block 205/2a (licence P1272). The water depth at the site is around 1,100 meters. The field was discovered by Chevron in 2004 through the exploration well 213/27-1Z, which identified oil and gas-bearing sandstones of Late Palaeocene to Early Eocene age (Rosebank) and Jurassic age (Lochnagar).

Ownership and Partners

The Rosebank project is operated by Equinor, which acquired a 40% stake and operatorship from Chevron in 2019. Other stakeholders include Suncor Energy (40%) and Siccar Point Energy (20%). In 2023, Equinor also partnered with Ithaca Energy for the development.

Development Phases and Infrastructure

The Rosebank field is planned to be developed in two phases:

Phase 1

• This phase involves the drilling of four production wells and three injection wells, using the Odjell Drilling's Deepsea Atlantic semi-submersible rig from April 2025 to August 2026.
• The wells will be tied back to the refurbished Petrojarl Knarr Floating Production Storage and Offloading (FPSO) vessel.
• The FPSO will be modified to include a new process module, structural reinforcements, and preparations for future electrification.
• Oil will be exported via shuttle tankers, and gas will be exported through a new 85 km pipeline to the existing West of Shetland Pipeline Systems (WOSPS) and onward to the SAGE gas terminal in St Fergus.

Phase 2

• This phase, dependent on the performance of the reservoir, will involve drilling up to three additional production wells and two injection wells.
• The timing for Phase 2 will be determined based on the learnings from Phase 1, with a potential Final Investment Decision (FID) in 2028.

Production and Reserves

• The Rosebank field is estimated to host recoverable resources of more than 350 million barrels of oil equivalent (boe), with 90% of the reserves being oil.
• Peak oil production is expected to reach 9,540 tonnes per day in 2027/28, while gas production will peak at 1.72 million cubic meters per day between 2029 and 2031.
• The field is expected to produce until around 2050, with the possibility of extending production until 2051 in the high-case scenario.

Economic Impact

• The project is estimated to create £24.1 billion of Gross Value Added (GVA) over its lifetime through direct, indirect, and induced economic impacts.
• It will also facilitate £6.3 billion of investment in UK-based businesses.
• The development is projected to contribute £8.1 billion to the UK economy and create over 1,600 jobs directly during the peak construction phase in 2025, along with 450 UK-based full-time jobs across its 25-year lifetime.

Environmental Considerations and Emissions

• The project has been a subject of intense debate due to its environmental and climate implications.
• Equinor has emphasized the concept of low-carbon oil, highlighting the use of innovative technologies such as the redeployment of the Petrojarl Knarr FPSO, which saved 250 kt of CO2 emissions.
• The FPSO has been modified to be electrification-ready, with plans for future electrification from shore, which could reduce the emission intensity from 12 kg CO2/boe to less than 3 kg CO2/boe, significantly lower than the North Sea average.
• A joint study involving BP, Ithaca, and Equinor is exploring the potential for a hub electrification concept to power the West of Shetland assets using onshore or offshore wind.

Regulatory Approval and Timeline

• The project received development consent from the North Sea Transition Authority (NSTA) on September 27, 2023, and Equinor and Ithaca Energy confirmed the Final Investment Decision (FID) for Phase 1 on the same day.
• Subsea installation works are expected to commence in 2024, with the first drilling planned in 2025.
• First oil production is anticipated in the fourth quarter of 2026.

Social and Political Context

• The Rosebank project is part of the UK government's North Sea Transition deal, aiming to ensure energy security while expanding renewable energy capacities.
• Despite its economic and energy security benefits, the project has faced opposition from environmentalists and some politicians due to its potential impact on climate pledges and the UK's transition to greener energy sources.