Aker BP and Equinor to coordinate development of North Sea licences

Aker BP and Equinor have entered into an agreement in principle on commercial terms for a coordinated development of the licences Krafla, Fulla, and North of Alvheim (NOAKA) on the Norwegian Continental Shelf.

Equinor is the operator of the Krafla licence and Aker BP is the operator of the NOA and the Fulla licences.

The two companies have also started preparations for submitting Plans for Development and Operation (PDO) in 2022.

The NOAKA area is located between Oseberg and Alvheim in the Norwegian North Sea.

Aker BP said on Thursday that the area holds several oil and gas discoveries with gross recoverable resources estimated at more than 500 million barrels of oil equivalents, with further exploration and appraisal potential.

The partners in the licences are Aker BP, Equinor, and LOTOS Exploration & Production Norge.

The contemplated development concept for the area consists of a processing platform in the South operated by Aker BP, an unmanned processing platform in the North operated by Equinor, and several satellite platforms and tiebacks to cover the various discoveries.

The purpose of the commercial terms is to secure an optimal and fair allocation of cost and production between the discoveries and to align incentives and hence ensure good integration and synergies across facilities and licences.

The partners share the ambition to develop the NOAKA area with a minimal carbon footprint.

According to Aker BP, state-of-the-art technological solutions will be used to ensure high efficiency and low emissions.

The facilities will be powered from shore and extensive use of digital solutions is expected both in the development and operations phase.

In related news, Aker BP earlier this week awarded a contract to Kvaerner for delivering the topside and steel substructure for the unmanned wellhead platform at the Hod field off Norway.

The Hod development in the Valhall area is the first project to be launched as a direct result of the changes to the Norwegian petroleum tax system, which will help to unlock new field development projects.

Aker BP’s board on Tuesday approved the project and authorized a fast track investment decision to be concluded as soon as possible. The employment effect of this project is estimated to 5,000 FTEs, and the project is also expected to generate significant tax revenues for Norway.