ConocoPhillips (NYSE:COP) received approval from the U.K. and Norway authorities for the development and operation of the Tommeliten A field in the North Sea.
Tommeliten A is a subsea development that involves two subsea templates, which can hold up to 12 production wells. The field facilities will be tied back to the Ekofisk Complex.
The project involves the installation of a processing module at the Ekofisk complex to deal with additional production from the Tommeliten A field. ConocoPhillips operates the Tommeliten A unit with a 28% stake.
In November 2021, the company submitted a plan for the development and operation of the Tommeliten A field. The field's development will help maintain the gas supply from the Ekofisk area from the middle of this decade. It is a further development of the petroleum resources and infrastructure in the mature areas of the Norwegian Continental Shelf.
The total capital expenditure associated with the project is estimated to be NOK 13 billion. The Tommeliten A field is estimated to hold 80-180 million barrels of oil equivalent, primarily comprising gas condensate. Production from the field is expected to begin in 2024.
The field development will unlock the production of new resources in the area and strengthen Ekofisk's outcome. Notably, ConocoPhillips awarded a large topside modification contract to Aker Solutions for this project.
The Norway authorities expect the project to quickly reach the highest production level once the field starts to produce. ConocoPhillips expects the Tommeliten A field to produce for 25 years.
ConocoPhillips Price
ConocoPhillips currently carries a Zack Rank #3 (Hold). Investors interested in the energy sector might look at the following stocks that presently flaunt a Zacks Rank #1 (Strong Buy).
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