Equinor’s Martin Linge oil and gas field is now expected to cost 60.8 billion Norwegian crowns ($6.52 billion), up from an estimate of 56.1 billion crowns a year ago, the government’s 2021 fiscal budget showed.
The company’s Arctic Johan Castberg oilfield development is now estimated to cost 53.4 billion crowns, up from 49 billion crowns previously, the government said.
Cost overruns also hit the Njord Future and other developments.
“The Covid-19 pandemic and weakened Norwegian (currency) have negatively impacted some of the projects, but the combined project portfolio is still very resilient,” Equinor said in a separate statement.
The long-delayed Martin Linge development in March became the first offshore field to be hit by the COVID-19 pandemic, interrupting ongoing installation work at its platform.
The pandemic also interrupted construction of the Johan Castberg’s floating production, storage and offloading unit (FPSO) at a yard in Singapore, while the company also discovered technical problems.