Share
Offshore/subsea systems

# Aker BP Submits Development Plans for Norwegian Sea Quartet

## Development of these offshore fields carries a combined price tag net to Aker BP of $19 billion. The board of directors of operator Aker BP has given the green light for the submission of Plans for Development and Operation (PDO) related to the NOAKA field development project, the Valhall PWP-Fenris project, the Skarv Satellite Project, and the Utsira High projects. The final approvals to submit the PDOs are expected to take place in the respective licenses during the first half of this month, after which the PDOs will be submitted to Norwegian authorities. Oil and gas resources in the projects are estimated to be around 730 million BOE net to Aker BP, in line with the company’s July strategy update when adjusting for the previously announced postponement of the Wisting project. Aker BP’s share of the investments in the projects are estimated at approximately$19 billion over the period 2023 to 2028, and the corresponding average break-even oil price is estimated to be $35–$40/bbl (calculated with 10% discount rate and accounting for the announced changes to the Norwegian Petroleum Tax, adding on average $5–$6/bbl to the break-even of the projects).

Contractor Subsea7 has, through the Aker BP Subsea Alliance, executed the front-end engineering and design work for these projects, under a single-source supplier framework. Subsea7 expects that the above-mentioned projects could lead to several contract awards, subject to the PDO submission in mid-December 2022: a major contract for the NOAKA field development project; a large contract for the Skarv Satellite project; and a substantial contract for Valhall PWP-Fenris project.

The contracts will be recorded in backlog upon signature by all parties, expected to occur mid-December.

Subsea7 defines a major contract as being over $750 million; a large contract as being between$300 million and $500 million; and a substantial contract as being between$150 million and \$300 million.

The Aker BP Subsea Alliance is a partnership between Aker BP, Subsea7 and Aker Solutions.

The NOAKA area is located between Oseberg and Alvheim in the Norwegian North Sea. The area holds several oil and gas discoveries with gross recoverable resources estimated at more than 500 million BOE. The 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 Valhall PWP-Fenris project consists of a new, combined process and wellhead platform at the field center (Valhall PWP), as well as for the Fenris field (formerly King Lear), which will be tied back to the new platform at the field center. Valhall PWP-Fenris is expected to extend Valhall’s lifetime by 40 years. Valhall was originally discovered in 1975 and came online in 1982. The field has produced more than 1.1 billion bbl.

The Skarv Satellite Project envisages the tieback of new satellite fields to the Skarv FPSO in the northern part of the Norwegian Sea. Fields in the area include Shrek in License 838 and Storjo in License 261, among others.

Like the Skarv Satellite Project, the Utsira High projects aim to link satellite fields to existing infrastructure. The existing platforms in the area are in the process of being electrified from shore.