Submitted Eleven Development Plans

Source: 12/16/2022, Location: Europe

On Friday, Aker BP submitted plans for development and operation to the authorities worth close to 200 billion kroner.

These PDOs and others expected to be submitted before the new year will contribute to a high level of activity in the Norwegian oil and gas sector in the years to come.

Aker BP’s contracts are expected to generate more than 150 000 full-time equivalents at a number of shipyards and supplier companies all along the Norwegian coast. According to Aker BP, 60 per cent of the investments will go to Norwegian suppliers. The ripple effects will have a positive impact throughout large parts of the country, which is precisely in line with the intention behind the temporary changes in the petroleum tax (the Tax Package).

Aker BP’s submission comprises ten PDOs and one plan for installation and operation (PIO). The plans related to projects in the following areas: Noaka (which will be called the Yggdrasil area), Valhall and the Utsira High in the North Sea, as well as in the Skarv area in the Norwegian Sea.

Major commitment
During the official hand-over in the NPD’s offices, Per Øyvind Seljebotn, Aker BP’s SVP Exploration and Reservoir Development, described the PDO package as a “gigantic industrial commitment”.

“We’re making a commitment to the future through gross investments of more than 200 billion over the next few years. In total, these investments in oil and gas developments on the Norwegian shelf make up the largest private industrial commitment in all of Europe. Aker BP is the operator for all the development projects, and the company’s ownership interest amounts to around 70 per cent,” said Seljebotn.

He expects that these profitable development projects will generate around 160 billion 2022-NOK in new tax revenues to the Norwegian state.

The most comprehensive plan covers what will be called the Yggdrasil area, where Aker BP is projecting investments of about 115 billion. The area consists of three fields that contain a total of 19 petroleum deposits, with more discoveries expected to follow in the years ahead.

Need for energy
“With the prospects of significant energy shortages in Europe going forward, it’s extremely important that the petroleum industry in Norway makes investment decisions this year with a scope that will yield a substantial contribution toward meeting Europe’s need for energy in a slightly more long-term perspective,” said Interim Director General Torgeir Stordal in the Norwegian Petroleum Directorate.

He adds that, in the PDOs submitted over the last two years, gas accounts for about one-half of the reserves in the new fields.

Valhall will be further developed with a new platform. The Fenris satellite field will also be tied into Valhall. Total investments here are around 50 billion kroner.

On the Utsira High – where the Johan Sverdrup field is a key element – new PDOs are being submitted for the Troldhaugen and Symra discoveries. Symra and Troldhaugen will become the first field developments with oil recovery from a fractured basement reservoir. Test production (“Rolvsnes”) has been under way for quite some time, and the results are promising.

The authorities also received PDOs for discoveries in the Norwegian Sea. This relates to the subsea developments Alve nord, Idun nord and Ørn, which will be tied in to the Skarv field.

Further development
“The plans submitted by Aker BP contain several important elements for further development of the resources on the Norwegian shelf. The plans include establishing new infrastructure in new areas, further developing fields that are currently producing, utilising available capacity in existing infrastructure, in addition to developing resources in an entirely new type of reservoir,” said Kalmar Ildstad, Director licence management in the NPD.

Earlier this year, the authorities received five development plans, and more plans are expected to arrive before the end of the year. The five PDOs that have been submitted and are being processed are Eldfisk Nord, Trell/Trine (will be called Tyrving), Irpa, Halten øst and Dvalin nord.

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