Nowadays, the cost of land or field is always increasing. Especially, if the location of the field is in a very strategic location, the price will be very high and it can give an impact on some problems. This problem happens to the same case of the project of Martin Linge gas field. Do you know what is actually going on with the problems there?
What is Actually Happen with Martin Linge Gas Field Project?
Actually, having the land for the big project means we already consider many factors. It includes about the fact of the land price, the positioning and all the potentials that can be gotten from that specifics land. Meanwhile, for Martin Linge gas field project, the start-up needs to be delayed because of some problems. Then, what are actually the problems that currently going on and attract this project?
- The Increasing of the Field Cost
Of course, building a big project is not a simple thing to do. Especially, if it needs the big field, the field should be ready and have no conflict with it. However, as the start-up is going to be built, the costs of the field are rising, and then it becomes the main distraction of its project. Then, it makes Equinor as the company needs to make an urgent decision about the start-up building.
- Different Budget Estimation from Country and Company
It sounds as simple problem but actually, it is something that gives a very big impact to the project. The country estimation of the budget shows that the fiscal budget does not have any problem. Meanwhile, the company has a different exchange rate with the country and it makes they have a different estimation about the project.
Moreover, the budget estimation cannot be separated from the term of reductions, simplifications and any other efficiency toward the project. So, the company needs more time to prepare it, or at least, finding other solution for the start-up, to reach the right goal of the start-up building itself.
- Different Current Costs for Different Area
In the increasing of the field costs, different area has a different range of cost. Of course, it makes the estimation of the budget needs to be revised, or at least, it needs more cross check to make sure that the budget estimation is fine and will not push the other problems to the start-up project as it is already started in the future. So, paying more attention to each cost of the different area is important.
The Impact of The Rising Field Costs
It is clear that the increase of the field costs gives impact to the execution of the start-up building. Of course, it will make the company needs more time to prepare or at least considering the estimation budget that will be spent for the start-up. The project which is actually being set in 2019, should be delayed until 2020.
Besides that, with the longer time of the due date, hopefully, the management can be better so that any problem that might come in the future can be done easily without needing to be delayed once again. So, by the success of the gas field building, hopefully, it can show the great synergy between the country and the company.
To conclude, the start-up building of Martin Linge gas field is already being delayed. The statement from Equinor, as the company, said that it would be done, at least in 2020. It was firstly targeted in 2019, but because of the problem, it needs to be pushed into 2020. No matter what, hope the company and country can give a good cooperation to give the best result on building this Equinor’s Martin Linge gas field, if you are interested you can apply oil and gas career.