Aker BP reveals plan to invest $700 million in North Sea tie-back

Norwegian oil and gas company Aker BP has submitted a plan for development and operation (PDO) of the Trell & Trine offshore project in the North Sea to the country’s Ministry of Petroleum and Energy (MPE). The project has a planned investment of about $700 million.

Aker BP, and its partners Petoro and LOTOS Exploration & Production Norge, submitted the plan to the Norwegian Minister of Petroleum and Energy, Terje Aasland, on Wednesday. This development will utilise the planned extended lifetime for the Alvheim field, increase production, and reduce both unit costs and CO2 per barrel.

“Trell & Trine is the third PDO submission in the Alvheim area in just one year, following close on the heels of Frosk and Kobra East & Gekko (KEG),” said Aker BP CEO, Karl Johnny Hersvik.

The Kobra East & Gekko plan was submitted in June 2021 while the Frosk plan was submitted in September 2021 and it has already been approved.

He added: “From an operational perspective, the Alvheim area is one of the most cost-effective on the Norwegian shelf, and the resource base has expanded dramatically since the field came on stream. This is the result of targeted exploration and business development, technological innovation and, not least, the level of cooperation with the suppliers.”

The Trell (production licence 102 F/G) and Trine (production licence 036E/F) discoveries are located 24 kilometres east of the Alvheim production vessel (FPSO).

The Trell & Trine development is planned with three wells and two new subsea installations (manifolds) to be tied back to existing infrastructure on East Kameleon and further on to the Alvheim FPSO. One of the three wells is Trell Nord, which although not yet proven, has a high likelihood of discovery. When the Trell production well is drilled, the plan is to first prove hydrocarbons in Trell Nord, then drill the wells in Trell and Trine. The programme will conclude with the production well in Trell Nord.

According to Aker BP, total investments are estimated to be approximately NOK 6 billion (about $700 million). Production is scheduled to start in the first quarter of 2025. The development will be carried out in cooperation with Aker BP’s alliance partners.

Recoverable resources in Trell & Trine are estimated to be approximately 25 million barrels of oil equivalent. Trell & Trine will produce with very low emissions, estimated at 0.3 kg CO2 per barrel.

The Alvheim field consists of the Kneler, Boa, Kameleon and East Kameleon structures, subsequently joined by the Viper-Kobra structures and the Gekko discovery. The Alvheim area includes satellite fields Bøyla, Vilje, Volund and Skogul. All of these fields are produced via the Alvheim FPSO, which came on stream on 8 June 2008.

When the Alvheim development was approved, the recoverable resources were estimated at just under 200 million barrels. Since then, close to 550 million barrels have been produced from the Alvheim area. The ambition is to develop and produce a billion barrels by 2040.

According to Thomas Hoff-Hansen, VP of Operations & Asset Development – Alvheim Asset, when Trell and Trine are approved, the Alvheim area will surpass 750 million barrels either produced or sanctioned for development.