A Review of the Nigerian Energy Industry

Aker BP submits $1.8bn field development plans

17 December 2017, News Wires – Aker BP ASA has submitted development plans for the Ærfugl (formerly Snadd), Valhall Flank West and Skogul (formerly Storklakken) fields to the Norwegian Ministry of Petroleum and Energy.

Total investments for the Ærfugl development are estimated at $1 billion (NOK 8.5 billion), which marks a reduction of approximately $242 million (NOK 2 billion) from previous estimates, with investments for

Valhall Flank West and Skogul estimated at $664 million (NOK 5.5 billion) and $181 million (NOK 1.5 billion), respectively.

The latest Valhall Flank estimate also represents a reduction of more than $181 million (NOK 1.5 billion) compared to previous figures.

Over the lifetime of the fields, the three projects are estimated to generate total oil and gas revenues of $12 billion (NOK 100 billion), based on an oil price of $60 per barrel, and generate 14,000 full time jobs, Aker BP said in a company statement.

“This is a great milestone for Aker BP and our partners, and demonstrates our strong commitment to the Norwegian continental shelf as well as to the Norwegian society,” Karl Johnny Hersvik, CEO of Aker BP, said.

“Investments to increase the value creation from our core areas is a vital part of our growth strategy. The Valhall Flank West, Ærfugl and Skogul developments will substantially strengthen Aker BP’s reserves and production from our operated field centres at Valhall, Skarv and Alvheim,” he added.

“The PDOs submitted today clearly demonstrate Aker BP’s ability to deliver in accordance with our promises. Our ambition is to be recognized as the cost and capital leading offshore E&P company, and I am very proud to announce that the projects have improved significantly in this respect,” Hersvik continued.

 

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