Aker BP commits to three Norwegian offshore hubs
Norway-based Aker BP has submitted plans for the development and operation for three projects offshore Norway with a total estimated cost of NOK15.5 billion (US$1.87 billion).
Ærfugl (ex-Snadd) in the Norwegian Sea, and North Sea-based Valhall Flank West and Skogul (ex-Storklakken), are the projects expected to generate total oil and gas revenues of NOK100 billion in real terms over the lifespans of the fields, assuming a constant oil price of US$60 a barrel.
Under the first phase at Ærfugl costing NOK4.5 billion, three new production wells will be drilled on the southern part of the field tied and tied into the floating platform storage and offloading unit (FPSO) via a trace heated pipe-in-pipe flowline, along with the existing A-1 H well. First production should follow in October 2020.
Subject to maturation, the second phase worth NOK4 billion ($483 million) will add two wells to the northern part of the field and one at Snadd Outer, also tied into the FPSO, with an estimated production start in late 2023.
Investments at the Valhall Flank West development total NOK 5.5 billion, while the smaller Skogul project is estimated to cost NOK1.5 billion.
The project will also extend the economic field life of the FSPO.
Following approval by Norway’s Ministry of Petroleum and Energy, Aker BP last week issued field-development contracts to Subsea 7 for the SURF facilities and to Aker Solutions for the subsea production system.
Both contracts carry options for the Phase 2 scope.