Norwegian E&P player Aker BP is reportedly planning to invest around NOK 10 billion ($1.2B) into a new field development on the Norwegian Continental Shelf and deliver a plan for development by the end of the year.
According to a report by the Norwegian news website, Petro.no, Aker BP plans to deliver development plan to connect its Snadd discovery in the Norwegian Sea to the FPSO unit Skarv by the end of the year.
The estimated investment for the first phase of the development is NOK 6 billion ($716.5M) while the total development is estimated to cost about NOK 10 billion, the news website further said.
Aker BP claims that Snadd South, North and Outer discoveries hold considerable recoverable gas resources. Test production is currently ongoing through 6507/5-A-1 H from the Snadd North discovery via the Skarv FPSO and tie-back of Snadd to Skarv FPSO will enable capacity utilization of Skarv gas processing capacity for several years ahead.
According to information from Aker BP’s investor day presentation in January 2017, the first phase of the development will consist of three wells tied in to Skarv A template, with electrically heat trace pipe-in-pipe flowline, and static and dynamic umbilical tied back to FPSO.
The possible second phase of the development will include three additional production wells but for this phase it may be necessary to expand the vessel’s capacity, Petro.no further reported.
The company aims for DG2 on the first phase of the development during the first quarter of 2017 and Plan for Development and Production ready during 2017 with production start in 2020. The DG2 part of the work process includes the Detail Concept (FEED) while DG3 is the execution of the concept.
Offshore Energy Today has reached out to Aker BP seeking confirmation of the project’s estimated costs.
In an e-mail to Offshore Energy Today, a spokesperson for the company confirmed the current cost estimates for the project are NOK 6 billion for the first phase and NOK 4 billion for the second one. However, the spokesperson added, the project is still in a phase where cost estimates will be subject to adjustments as the project matures.
Offshore Energy Today Staff