More than 200 Norwegian suppliers involved in Yggdrasil and Valhall PWP-Fenris
So far, more than 200 Norwegian supplier companies are directly contributing to the two upcoming major developments on the Norwegian shelf – Yggdrasil and Valhall PWP-Fenris. And the number will grow in the years to come.
“The Yggdrasil and Valhall PWP-Fenris development projects are direct responses to the activity package approved by the Storting three years ago. It aimed to secure activity, protect jobs, develop expertise and further develop the industry at a time characterised by the pandemic, record-low oil prices and steep declines in investments. Together with our licence partners, Aker BP is now delivering in line with the politicians’ expectations,” says CEO Karl Johnny Hersvik of Aker BP.
The Storting deliberated on the Yggdrasil and Valhall PWP-Fenris development plans on 5 June 2023. On 28 June, the Ministry of Petroleum and Energy approved the developments. With this resolution, the politicians have greenlighted thousands of jobs and important value creation in Norway.
World-class industry
Yggdrasil and Valhall PWP-Fenris represent NOK 165 billion in investments. The development projects are expected to generate more than NOK 120 billion in estimated tax revenue for Norway.
“Although Aker BP is the largest privately owned taxpayer in Norway, we’re actually a small business. We will be drawing on the entire value chain to carry out these developments. Yggdrasil and Valhall PWP-Fenris are possible thanks to the world-class Norwegian industry that can deliver complex oil and gas projects. Many of these companies will also take Norway into new value chains,” says Hersvik.
The Norwegian share of deliveries in Yggdrasil and Valhall PWP-Fenris is about 65 per cent, and the projects will contribute 130,000 full-time equivalents in Norway throughout the lifetime of the fields. About half of this will be in the development phase.
Involving the whole country
The contracts are awarded by Aker BP, as well as the company’s alliance partners and strategic partners. This directly involves more than 200 Norwegian suppliers, who will in turn make thousands of purchase orders, with a significant percentage going to Norwegian companies.
For many suppliers, this means a considerable boost in competitive edge.
- “This contract allows Tratec Halvorsen to invest in cutting-edge robotic welding machines. This makes us competitive in the international market,” says CEO Frode Olsen. The Kvinesdal-based company is delivering large process tanks to Yggdrasil. The contract valued at more than NOK 100 million has ensured work for engineers, production personnel and apprentices for the next two to three years.
- Framo in Bergen is delivering pumps to Valhall PWP-Fenris and Yggdrasil. The contract is a so-called performance-based contract where the company will work together with Aker BP throughout the equipment’s lifetime, from design to operation. “Aker BP has challenged our mindset. Through sharing data, we can jointly optimise the use of pumps when operating the equipment,” says director of offshore pumping systems, Sigve Gjerstad.
- “Linjepartner has been awarded a contract worth more than NOK 100 million with Yggdrasil power from shore. This will ensure a robust foundation for our company for the next two years, as well as an educational and interesting workplace for all our employees in and outside Trøndelag,” says general manager Stig Myhr. Linjepartner is hiring new employees and more apprentices as a result of the contract.
- FireNor in Kristiansand will deliver advanced firefighting equipment to Yggdrasil. The NOK 100-million contract will secure work for 34 employees and the company will recruit new employees and take on more apprentices. “We are placing NOK 50 million in contracts with our sub-suppliers. The contract also strengthens our position in the offshore wind market,” says Managing director Kjetil Kleven.
- “Leirvik AS has invested in automated and robotic production lines for welding and plate cutting. It will increase efficiency, improve safety for employees and boost competitiveness,” says CEO Helge Gjøsæter. The yard at Stord will deliver the living quarters and helicopter deck for Hugin A in Yggdrasil. The contract will generate work for up to 220 people over the next several years, including apprentices.
Upgrading yards
Yggdrasil and Valhall PWP-Fenris will yield considerable activity at yards in Grimstad, Eydehavn, Egersund, Stavanger, Haugesund, Stord, Verdal and Sandnessjøen.
Aker Solutions in Verdal will deliver two topsides and four jackets over the next three years. This secures jobs and vocational training for up to 100 apprentices. Through these projects, the Verdal yard will also invest in a robotic and automated production line.
“This will contribute to efficient project execution, improved productivity and an even safer workday for our employees. The upgrades will also strengthen Aker Solutions’ position in future renewables projects,” says President and CEO of Aker Solutions, Kjetel Digre. Aker Solutions is also upgrading the yards in Egersund, Stord and Sandnessjøen. Overall, the company will provide vocational training for 500 apprentices as a result of the projects in the activity package.
Celebrating the approval
On 30 June, Aker BP and Aker Solutions are hosting a celebration of the development plans at the Verdal yard.
“These developments are incredibly important to Norway. We will celebrate this along with politicians, trade unions, other national stakeholders, our employees, licence partners, and most importantly, strategic partners and suppliers,” says Hersvik.
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FACTS – AKER BP-OPERATED OIL AND GAS PROJECTS
- 28 June, the Norwegian Ministry of Petroleum and Energy (MPE) approved a total of nine plans for development and operation (PDOs) and one plan for installation and operation (PIO), all operated by Aker BP. (Link to press release)
- The Yggdrasil and Valhall PWP-Fenris developments were processed in the Storting due to the size of the projects, and a broad majority voted to approve the projects on 5 June. (Link to press release)
- Aker BP's licence partners in Yggdrasil and Valhall PWP-Fenris are Equinor, PGNiG Upstream Norway and Pandion Energy.
- Read more about Yggdrasil
- Read more about Valhall PWP-Fenris
Contacts:
Ole-Johan Faret, Press Spokesperson, tel.: +47 402 24 217
Kjetil Bakken, Head of Investor Relations, tel.: +47 918 89 889
About Aker BP:
Aker BP is a company engaged in exploration, field development and production of oil and gas on the Norwegian continental shelf. The company operates the field centres Alvheim, Edvard Grieg, Ivar Aasen, Skarv, Ula and Valhall, and is a partner in the Johan Sverdrup field. Aker BP is headquartered at Fornebu, Norway, and is listed on Oslo Børs under the ticker AKRBP. More about Aker BP at www.akerbp.com.
