The cost of Aker BP's major ongoing oil and gas development projects, Yggdrasil and Valhall-Fenris, has risen by 9.8 per cent and 23 per cent, respectively, from nominal estimates a year ago, data from the government's fiscal budget showed on Wednesday.
The increase was in line with projections made by Aker BP in July, a company spokesperson said.
The Yggdrasil project, the largest project under development off Norway since 2019, is now expected to cost NOK195 billion ($20.41 billion) up from a nominal estimate of NOK177.6 billion one year ago.
The project to build a new processing platform for Aker BP's Valhall field, combined with the development of the nearby Fenris gas discovery, is now expected to cost NOK93.4 billion, up from a previous estimate of NOK75.9 billion.
Yggdrasil and Valhall-Fenris were originally projected to cost NOK120.8 billion and NOK52.9 billion, respectively, when they were approved by the government in 2023.
Aker BP flagged a cost rise in July citing updated estimates for construction of offshore installations and extra resources needed to meet the 2027 completion deadline.
Estimates for Yggrasil project also increased due to the addition of new, recently discovered resources that expanded the work's scope, as well as due to additional wells at Valhall-Fenris, the fiscal budget showed.
Both projects were on track to start production next year, according to the government documents.
(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)
