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Aker BP awards contracts worth 440 million kroner

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Aker BP has awarded contracts to alliance partners for front-end engineering and design (FEED) valued at approximately 440 million kroner. The contracts cover a new central platform on Valhall, as well as a new platform and tie-in of the King Lear field. The joint development will contribute to extended lifetime and increased value creation from Valhall.

“This is an important milestone in the further development of the Valhall area. Through this development, Aker BP can maximise value creation from an existing field. Moreover, it will contribute to significant value creation for Aker BP, its partners, owners and the Norwegian society,” says SVP Operations & Asset Development Ine Dolve.

Low emissions through power from shore

The concept consists of a new process and wellhead platform (NCP) which has a bridge connection to the Valhall field centre, and an unmanned platform on King Lear around 50 km from the field centre. New infrastructure will be laid on the seabed to connect the two fields. A total of 19 wells are planned, and the concept also includes considerable modification work on the Valhall field centre.​

“This development will allow Aker BP to secure continued high production from the Valhall field centre and the flank platforms in the area after 2028. The development also provides access to resources from Valhall and King Lear. Aker BP is planning pre-investments for extra well space on both installations and secure flexibility to tie in of new discoveries as there is still additional upside potential in the area,” says Dolve.

The Valhall area is powered from shore resulting in close to zero emissions during normal operations. The plan is to connect the new installations to the existing power from shore solution. ​

An alliance project

Pandion Energy is Aker BP’s partner in the Valhall licence. PGNiG is the partner in King Lear, which was discovered in 1988. The partnerships have decided to proceed with the selected concept for NCP and King Lear. Further maturing will now follow through the FEED phase, until a final investment decision and submission of plan for development and operation is planned in late 2022.​

“Aker BP has a record-breaking investment programme going forward to 2028. NCP and King Lear will become one of the company’s largest development projects. A large part of the contracts is expected to be awarded Norwegian suppliers. We are talking about significant investments and the development will provide ripple effects throughout the entire country. This will contribute to further development of the Norwegian supplier industry, and secure work at the yards as we move into the energy transition,” says SVP Projects Knut Sandvik.

The plan is to execute NCP and King Lear in the alliance model where Aker BP works together with strategic partners as one team with shared goals and incentives. ​

The FEED contracts

  • Aker Solutions as part of the “Fixed Facilities Alliance”: Topsides and jacket for both NCP and King Lear
  • ABB as part of the “Fixed Facilities Alliance”: Electrical, instrument, control systems and telecom (EICT) for NCP and King Lear
  • Aker Solutions as part of the “Subsea Alliance”: Umbilicals for King Lear and related subsea infrastructure
  • Subsea7 as part of the “Subsea Alliance”: Risers and pipelines
  • Aker Solutions as part of the “Modification Alliance”: Modifications on the Valhall field centre

Longer lifetime for a giant

First production from the development is planned in 2027.

“The ambition is to produce a total of two billion barrels from the Valhall area. A comprehensive modernisation of the area is under way, with the tie-in of new flank platforms, removal of old installations and permanent plugging of wells. Together with NCP and King Lear, this will enable us to operate Valhall up to around 2060,” concludes Valhall Asset Manager Ole Johan Molvig.

Contact:
Ole-Johan Faret, Press Spokesperson, tel.: +47 402 24 217

About Aker BP:
Aker BP is an independent E&P company with exploration, development and production activities on the Norwegian Continental Shelf. Aker BP is the operator of Alvheim, Ivar Aasen, Skarv, Valhall, Hod, Ula and Tambar. The company is also a partner in the Johan Sverdrup field. Aker BP is headquartered at Fornebu, Norway, and is listed on the Oslo Stock Exchange under the ticker ‘AKRBP’. More about Aker BP at www.akerbp.com.

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