Aker BP outlines growth path offshore Norway

Offshore staff

TRONDHEIM, NorwayAker BP plans to submit three plans for development and operation (PDO) this year to Norway’s Ministry of Petroleum and Energy, the company revealed during a Capital Markets Day presentation.

One is for Snadd, a subsea-tie-in to the Skarv FPSO in the Norwegian Sea, with an expected production start in 2020. Here results from a trial production scheme later this year will be included in the PDO, to be submitted during the fall.

The other PDOs are for Valhall West Flank in the North Sea, due onstream in 2021, and Storklakken, a subsea-tie-in to the Alvheim FPSO in the North Sea, expected onstream in 2020.

This year the company will have three rigs in action on operated projects: the jackup Maersk Interceptor on the Ivar Aasen field for development drilling (due to resume in the current quarter); the semisubmersible Transocean Arctic on Volund and Boa (both Alvheim areas satellites); and the Maersk Invincible, which is set to drill three of seven planned wells from the Valhall Injection platform, in addition to well plugging on Valhall DP.

Aker BP is also looking to drill a new infill well and implement a gas-lift project at Tambar in the southern Norwegian North Sea. These programs and tie-in of the Centrica-operated Oda facilities should help increase future production in the Ula area.

In total, the company will operate four exploration wells offshore Norway this year and participate in three more.

It aims to be a leading exploration company on the Norwegian continental shelf, targeting a net 250 MMboe of fresh resources during 2016-2020.

Overall in 2017 Aker BP plans capex investments of $900-950 million, with exploration expenditure in the $280-300 million range, and decommissioning expenditure of $100-110 million.

The newly merged company’s production in 2016 averaged 118,200 boe/d, comprising 80% oil and 20% gas. This year it anticipates output increasing to 128,000-135,000 boe/d, at an average cost of $11/boe.

Its current portfolio has the potential to deliver 270,000 boe/d in 2023 from sanctioned and yet-to-be-sanctioned projects, representing a compound average growth rate of 12%.

At the end of 2016, the company’s P50 reserves were 711 MMboe and its contingent resources were an estimated 600 MMboe.


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