Aker BP Investing Over $15B To Increase Production By 125,000 bpd

Aker BP
Aker BP will invest over $15 billion in development projects on the Norwegian continental shelf over the next five to six years.

Oil and gas company Aker BP will invest over $15 billion in development projects on the Norwegian continental shelf over the next five to six years.

According to Aker BP, the projects operated by the company will contribute to 145,000 man-years and $17.3 billion in expected tax payments to the Norwegian State.

“The package of measures adopted by a broad majority in the Norwegian Parliament two years ago has been a fantastic success for both the supplier industry and the society in general,” says Karl Johnny Hersvik, CEO of Aker BP.

Following the merger with Lundin Energy, Aker BP is working on a total of 15 development projects on the Norwegian continental shelf, where the Plan for Development and Operation will be submitted to the Ministry of Petroleum and Energy during the year.

The largest development project is in the NOAKA area in the North Sea, coordinated development of several fields where total investments are estimated at about $10 billion. This project alone will create around 50,000 man-years in the development and operation phase.

Construction of a new platform on the Valhall field in the southernmost part of the Norwegian North Sea, and hook-up of the Fenris field – formerly known as King Lear – to the new platform, has estimated investments of $4-5 billion, which will result in 65,000 man-years in total employment.

The development of several satellite fields in the vicinity of the Skarv FPSO in the Norwegian Sea is the third largest development project operated by Aker BP with investments estimated at $1.6-2 billion. Aker BP also has several subsea developments which will be tied back to the Alvheim, Edvard Grieg, and Ivar Aasen fields, all in the North Sea.

“When we were in the midst of the crisis, the Norwegian society showed itself from its very best side. The authorities, the political parties in the parliament, employers’ and employees’ organizations, and the industry – all talked together and sought a solution to a dramatic situation for the supplier companies across the country. The result was a package of measures adopted by a broad majority in the parliament in June 2020. This package of measures made the oil companies able to invest again. The wheels started turning. And now the suppliers are receiving large and important assignments. Now we are standing here a little over two years later and see the direct result of the package of measures that was adopted,” Hersvik said.

Just recently, the company awarded a large contract to Rosenberg Worley to build parts of the new central platform on the Valhall field. The contract, which was announced on August 26, will start in the second half of 2023.

The development projects, as well as several improved recovery and efficiency measures, mean that Aker BP expects to increase its production from the current 400,000 barrels per day to about 525,000 barrels in 2028.

Including the $17.3 billion from the new development projects, Aker BP will contribute more than $40 billion to the Norwegian Treasury in the form of taxes over the next ten years.

Source: Rigzone.com