Aker BP all set to start production from Norwegian gas field

Norwegian oil and gas company Aker BP is now ready to start production from Phase 1 of its operated Ærfugl gas and condensate field development located in the Norwegian Sea.

The development of the Ærfugl gas and condensate field in the Norwegian Sea is planned in two phases.

Both phases are tied into the existing production vessel (FPSO) on the Skarv field, which is located 210 km west of Sandnessjøen in Nordland county.

Operator Aker BP is now ready to start production from Phase 1, according to the Norwegian Petroleum Directorate’s statement on Friday.

Production is also taking place from an earlier test production well in Phase 1 and an accelerated well in Phase 2, which was drilled from an available well slot on one of Skarv’s subsea templates.

Aker BP and other licensees plan to complete the Ærfugl development with the remaining two wells in Phase two.

The Ærfugl was proven in 2000. The Plan for Development and Operation (PDO) for both phases of the Ærfugl development was submitted to the Ministry of Petroleum and Energy in December 2017 and approved in April 2018.

In November 2019, Aker BP and its partners sanctioned the second phase of the project.

Export of gas from Skarv will be postponed to obtain capacity for the Ærfugl gas on Skarv FPSO. This will contribute to improved oil recovery on Skarv.

Niels Erik Hald, the NPD’s assistant director for development and operations, says “it’s positive that production from Ærfugl Phase 1 will start as planned.”

The Ærfugl reservoir is mainly a gas reservoir that extends over 60 km and is 2-3 km wide. The project holds a total of around 300 million barrels of oil equivalent.

Total investment costs for the Ærfugl project are around NOK 8 billion ($862 million).

The total ‘life of field’ project has a break-even price of around $15 per barrel (converted from gas). This makes the field development one of the most profitable being implemented on the Norwegian shelf, according to Aker BP.