Aker BP submits upstream plans worth $20.5 bln in Norway

Aker BP and its partners have submitted 11 oil and gas field development plans to the government targeting recoverable reserves of 1.1 billion boe, the Norwegian IOC announced on Friday.

Partners include Aker Solutions, which would take a USD 5.09-billion share in the works, Subsea 7, Siemens Energy and ABB.

The largest project is the Yggdrasil project – previously called the North of Alvheim Krafla Askja or NOAKA project – which is overseen by partners Aker BP, Equinor and LOTUS Exploration and Production Norge. Under the latest submitted FID, Aker BP will take over operatorship of the project from Equinor.

The USD 11.7 billion development will target production of estimated reserves of 650 million boe from 55 wells. It will consist of an unmanned production platform, processing platform and living quarters. Production is expected to start in 2027.

Aker BP is also submitting a revised plan for development for the Valhall field and a new plan for development for the Fenris (formerly King Lear) field under the USD 5.09-billion Valhall PWP-Fenris project in the southern part of the North Sea. The area holds recoverable reserves of around 230 million boe.

The development will consist of a production and wellhead platform linked to 24 wells at the Valhall central complex and eight wells at an unmanned installation at the Fenris field. Production is expected to begin in 2027.

Additionally, the company has submitted plans to develop the USD 1.73-billion Skarv satellite project, consisting of the Alve Nord, Idun Nord and Ørn condensate discoveries in the northern part of the Norwegian Sea. The developments hold recoverable reserves of 120 million boe.

The plans include subsea production systems tied to the Skarv FPSO. Production is expected to begin in 2027.

The last project is the USD 2.14-billion Utsira High project in the North Sea that will see three subsea tie-ins attached to the existing structures targeting recoverable reserves of 124 million boe. Production is expected to begin in 2026 or 2027.

All deals will allow the companies to take advantage of temporary tax benefits implemented by the Norwegian government in 2020 due challenges caused by the COVID-19 pandemic.