AkerBP Starts Construction for Three Norwegian Sea Discoveries

Aker BP ASA has commenced construction for three gas and condensate discoveries in the Skarv field in the Norwegian Sea.

Collectively known as the Skarv Satellite Project, the Alve Nord, Idun Nord and Orn fields comprise "the largest development in the Norwegian Sea in recent years", the company noted in a press release this week announcing the progress.

The project prolongs production on Skarv, which started up over 10 years ago, Aker BP has said. The satellite project is targeted to begin producing in the third quarter of 2027 with an expected recovery of 120 million barrels of oil equivalent resources, mainly gas.

During its decade of production so far, "Skarv has been a reliable supplier of oil and, not least, gas to Europe, and is now producing around 22 million standard cubic meters [776.9 million cubic feet] of gas and around 25,000 barrels of condensate every single day", the company said.

The satellite project aims to maintain production through 2040.

Construction has now started for the first of three seabed installations for the satellite project, Aker BP said, some two months after the approval of the development plan by Norway's Petroleum and Energy Ministry.

Each of the discoveries has an undersea template with four well slots and two wells tied back to the Skarv production vessel, a floating production storage and offloading (FPSO) platform, in the north of the Norwegian Sea, according to Aker BP.

"The Modification Alliance [Aker BP and Aker Solutions ASA] will be carrying out comprehensive modifications on the Skarv production vessel so it can receive production from the satellite developments", the media release said.

"Aker BP is using the company’s alliance model in the implementation phase, including the Subsea Alliance with Aker Solutions and Subsea 7, and the Modification Alliance with Aker Solutions", the announcement said, noting the approach saves costs and brings "synergies across the deliveries".

"Norwegian suppliers are expected to deliver around 60 percent of the investments", which are estimated to be $179.7 billion (NOK 17 billion), it said.

Production from the three discoveries "will have low CO2 [carbon dioxide] emissions at around 4.5 kg per barrel", Aker BP noted. "After start-up, they will account for around 60 percent of Aker BP’s net production from the Skarv area for several years."

Besides extending the lifetime of the production vessel, the satellite project "is also a direct response to the stimulus package adopted by the Storting (Norwegian parliament) three years ago", Aker BP said.

"The objective was to ensure activity, preserve jobs, promote competence and skills and further develop the industry during a period characterized by the pandemic, record-low oil prices and a sharp decline in investments."

In Aker BP's announcement June 28 of the ministry approval of the development plan, Skarv director Thomas Ovretveit said, "If we are to achieve our goal of creating the oil and gas hub of the future in the Norwegian Sea, we must succeed in developing and putting the Skarv satellite project into production".

"The SSP [Skarv Satellite Project] developments also pave the way for future developments in the area, related to new discoveries, that can contribute to prolonged high production from the Skarv FPSO."

Aker BP holds a 68 percent stake in Alve Nord, under production license (PL) 127C, while Wintershall DEA AG has a 20 percent interest and PGNIG Upstream Norway AS owns 11.9 percent. In Idun Nord, which is under PL 159D, Wintershall DEA holds 40 percent, Equinor ASA 36.16 percent and Aker BP 23.83 percent. In Orn, under PL 942, PGNIG Upstream Norway owns 40 percent while Aker BP and Equinor have 30 percent each.

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