Submitting PDOs for Valhall PWP-Fenris

16 December 2022

Aker BP ASA (operator), on behalf of the joint venture partners, today submits a revised Plan for Development and Operations (PDO) for the Valhall field and a PDO for the Fenris field to the Norwegian Authorities. 

The joint development project, located in the southern part of the North Sea, comprises a new centrally located production and wellhead platform (PWP) bridge-linked to the Valhall central complex with 24 well slots, and an unmanned installation (UI) with 8 slots at Fenris (formerly King Lear) subsea tied back 50 kilometres to the PWP.  

“This is a unique project collaboration on the Norwegian continental shelf; a coordinated development that will both ensure continued great value creation from the Valhall area, and at the same time a robust development solution for the Fenris discovery,” says Peter Kupka, project director for the development project. 

Total recoverable resources are estimated to 230 million barrels of oil equivalent (mmboe) gross, divided into 160 mmboe at Fenris and 70 mmboe at Valhall. The development plan includes a total of 19 wells, of which 15 at Valhall PWP and 4 at Fenris. Production start is planned for the second and third quarter 2027, respectively.

The project will also involve a modernisation of Valhall that ensures continued operation when parts of the current infrastructure are to be phased out in 2028, thus enabling production of the remaining Valhall reserves from 2029 onwards, which are estimated at 135-140 mmboe gross.

In addition, the project will add gas capacity to Valhall and thus enable Valhall to serve as a hub for potential new gas discoveries in the future.

The development will leverage Valhall’s existing power from shore system with minimal emissions, estimated at less than 1 kg CO₂/boe. 

The joint development project implies significant synergies in the development and operational phases for the Valhall and Fenris license partners. 

Total investments in the Valhall PWP - Fenris development are estimated at NOK 50 billion in real terms.

Increased gas export and minimal emissions  

Production from Fenris will significantly increase the gas export from Valhall through the existing Norpipe pipeline to Europe and will more than double Valhall’s gas processing capacity. And as such contributing to Norway’s long-term capacity for stable energy deliveries to Europe. 

The joint Valhall PWP-Fenris project is the cornerstone of the Valhall asset strategy and serves multiple purposes: 

• Secures lifetime extension and continued Valhall production 
• Unlocks new volumes on Valhall and Fenris with significant upside potential 
• Establishes Valhall as an area gas hub with minimal emissions 

The Valhall asset and field is currently undergoing a major modernisation and the new PWP installation will become an integrated part of the Valhall field taking over key global functions as other facilities are phased out. 

Furthermore, PWP and Fenris UI will be constructed with significant flexibility to accommodate further development of additional area resource upsides. The total resource potential enabled by the Valhall PWP-Fenris development, including life-time extension, drilling of new wells, and identified future upsides, is estimated at around 500 mmboe. 

Multiple contracts awarded

The project will use Aker BP’s alliance model in the execute stage. In total, including the investment and operational phases, the development will have a Norwegian content higher than 65 percent over the construction period. Aker BP, on behalf of the Valhall PWP-Fenris partners, enters into the following execution contracts: 

• ABB and Aker Solutions for the PWP and Fenris topside and jacket fabrication. The scope will be organized and executed through the Fixed Facilities Alliance
• Subsea 7 Norway for Subsea Umbilical Riser Flowlines (SURF) and Aker Solutions for Subsea Production Systems (SPS). Organised and executed through the Subsea Alliance
• Aker Solutions for the modification scope at Valhall field centre. Organised and executed through the Modifications Alliance

In addition, Aker BP and Jacktel AS have entered a contract for the accommodation unit ‘Haven’ in 2026-2027.

All contracts are awarded following the approval by the MPE for making early project commitments, subject to the final approval of the PDOs. 

Licenses and partners

Valhall Unit – PL 006B and 033B: 

• Aker BP 90 percent
• Pandion 10 percent

Fenris (formerly King Lear) – PL146, 146B, 333 and 1088: 

• Aker BP 77.8 percent
• PGNiG 22.2 percent

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 an independent E&P company with exploration, development and production activities on the Norwegian Continental Shelf. Aker BP is the operator of Alvheim, Edvard Grieg, 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.