In collaboration with Cognite and Framo, Aker BP intensifies the digitalisation of offshore operations; new smart service contract will change the traditional approach to maintenance.

The Ivar Aasen platform in the North Sea provides Aker BP with more than just oil. It also transmits vast volumes of data back to shore. The interpretation of these data are now set to make the platform amongst the most technically advanced worldwide.

«Aker BP’s vision is to digitalize all our operations from cradle to grave. Key elements are transforming business models and activities through digital technologies and the liberation of data flows. The smart service contract with Framo and Cognite is an important milestone on this journey, and underpins our ambition to take the lead in digitalization», says Lars Atle Andersen, VP Operations – Technology & Digitalization in Aker BP.

A successful collaboration with suppliers

By using Cognite’s data platform, contextualised live data is made available from Ivar Aasen. This provides Framo, the supplier of pumps to Ivar Aasen, real-time access to data from their equipment.

«With Cognite making live and contextualised data available, we at Framo are able to create our own ‘apps’ to predict the status of our equipment, allowing us to plan efficient maintenance. The new system sends intelligent data on our pumps, so we can predict how the pumps will perform in the future» says Trond Petter Abrahamsen, Managing Director of Framo Services AS.

The overall goal of the collaboration between Aker BP, Cognite and Framo is to change the traditional approach to maintenance. Continuous flow of live offshore data allows for onshore monitoring of equipment replacing unnecessary scheduled maintenance activities with maintenance when needed.

This also calls for a new approach to agreements, and on Wednesday 29th of August a special smart service contract between Aker BP and Framo Services will be signed.

«The newly available insights of how the pumps of a specific installation are functioning, results in more efficient maintenance. While our service agreements previously just defined hourly rates, we will now focus on uptime. This is something completely new for us and has required the design of new smart contracts with Aker BP»,” explains Trond Petter Abrahamsen.

Profitable at 35 USD per barrel

Aker BP will continue to digitalise their offshore operations, and the company’s objective is to carry out profitable development projects even at oil prices below 35 USD per barrel. Cognite’s data platform is a core enabler for these ambitions. Cognite liberates and organises Aker BP’s industrial data to create a digital representation of the industrial reality, both back in time and in real-time. It enables AkerBP to extract useful insights on its operations but also to share its data and insights with partners like Framo and to enable new services and business models.

«The more we share, the better. If we can apply this technology in all our fields, our operations will improve. We are confident that this is a smart move. That’s why we are clearly stating what we want to achieve and hope that many others will follow», says Lars Atle Andersen from Aker BP.

FACTS

Cognite

Norwegian SaaS technology company with ambition of providing the world’s best industrial IOT data platform. The strength of the platform lies with its ability to contextualize all industrial data types. Once contextualized, the Cognite Data Platform provides extensive toolkits and APIs to build unlimited models and applications and unlock the data´s value for its end customers. The applications are immense, from wind and energy to shipping, offshore and transportation. Cognite´s technology is in daily operation at large industrial companies. www.cognite.com

Framo

Established in 1938 and currently a world-leading supplier of high-quality pump systems for both global shipping and the offshore industry. The company has a total 1,200 employees and its main office on the island of Askøy close to Bergen. It also has eight branch offices. The company’s equipment is produced locally in three different factories in the Bergen area. www.framo.com

The Ivar Aasen field

The Ivar Aasen field is located in the northern part of the North Sea, some 175 km west of Karmøy. The sea depth at the platform is approximately 110 metres.

The initial discovery was made in 2008. Production started on 24 December 2016. The first oil production at the Ivar Aasen field was four years after submission of the plan for development and operation (PDO).

The development of Ivar Aasen covers resources from five licences: PL 001B, 028 B, 242, 338 and 457. The licence-holders in the five fields signed an agreement in June 2014 specifying ownership of the unit-based development.

The partners involved in the Ivar Aasen field are: Aker BP ASA (34.7862%), Equinor ASA (41.4730%), Bayerngas Norge (12.3173%), Wintershall Norge (6.4615%), VNG Norge (3.0230%), Lundin Norway (1.3850%), OKEA (0.5540%)

CONTACT

Ole-Johan Faret, Press spokesperson, Aker BP
Mobile: +47 402 24 217 / Email: ole-johan.faret@akerbp.com

Andrzej Golebiowski, Chief Commercial Officer, Cognite
Mobile: +47 452 14 904 / Email: Andrzej.Golebiowski@cognite.com

Trond Petter Abrahamsen, Managing Director, Framo Services AS
Mobile: +47 901 45 266 / Email: tpa@framo.no

Aker BP ASA is pleased to announce that the Johan Sverdrup partnership today is submitting the plan for development and operations (PDO) for the second phase of the Johan Sverdrup field development to the Norwegian Ministry of Petroleum and Energy.

The Phase 2 PDO demonstrates further improvements in resources and investment cost for the Johan Sverdrup field:

• Total recoverable resources for Johan Sverdrup are now estimated to 2.2-3.2 billion barrels of oil equivalents (previously 2.1-3.1 billion barrels), with a most likely estimate of 2.7 billion barrels.
• Phase 1 of the field development is 80 percent complete, and remains on track for production start in November 2019. The investment cost estimate for Phase 1 is reduced from NOK 88 billion to NOK 86 billion. The planned production capacity for Phase 1 is 440,000 barrels per day.
• The investment cost estimate for Phase 2 is reduced from NOK 45 billion to NOK 41 billion. Phase 2 will increase the field’s production capacity to 660,000 barrels per day. Production start for Phase 2 is planned for Q4 2022.
• The break-even oil price for the total project is below USD 20 per barrel. For Phase 2 alone, the break-even price is below USD 25 per barrel.
• Johan Sverdrup will have very low CO2 emissions of only 0.67 kg per barrel.

Aker BP has 11.57 percent working interest in the Johan Sverdrup field, which is operated by Equinor. For more information about Johan Sverdrup and the Phase 2 PDO, please see today’s press release from Equinor.

Media contacts:
Tore Langballe, VP Communications, tel.: +47 907 77 841
Ole-Johan Faret, Press Spokesman, tel.: +47 402 24 217

Investor contact:
Kjetil Bakken, VP Investor Relations, tel.: +47 918 89 889

At ONS we will show how we can solve the challenges we face in our company and for our industry. To reach our goals there is a great need for change and innovation.

We must cut costs and increase productivity, by enhancing the way we work and innovate throughout the value chain.

Aker BP want to lead on in the digitalization, and you will see that when you visit our stand. The vision is to digitalize the entire life cycle for our operations.
The rewards will be:

• Increased productivity
• Better quality
• Shorten the time we use on different processes
• Reduce environmental impact and improve safety for our employees

We want to do things differently and challenge the business’ mindset and way to operate. We will be happy to be the oil business’ Google or Spotify!

To become more digital, we have three important areas to work with:

• Prioritization of data that is our fundament (many sources/silos)
• To be able to smart use of data, and we cooperate with Cognite to solve this
• We would like to share data and make it accessible, not just for us in Aker BP, but for the entire value chain. That is why we use the term; Data Liberation

We want a Norwegian Continental Shelf that:

• Has all data available with an open API standard, that enable big data analysis
• Where we separate data and applications
• We share data throughout the value chain

About Aker BP:

• Aker BP is a fully-fledged oil company with a lot of activities in exploration, development and operations on the Norwegian Continental Shelf.
• We have a clear ambition: To create the leading exploration- and production company offshore
• Measured by production, Aker BP is one of the biggest independent oil companies in Europe, and registered on the Oslo Stock Exchange (OSE). Average production during the first half of 2018 was 158 000 barrels per day.
• Aker BP has a balanced portfolio and is operating the field centers Valhall, Ula, Ivar Aasen, Alvheim and Skarv.
• The company is headquartered in Fornebu, Oslo, and we have branches in Stavanger, Trondheim, Harstad and Sandnessjøen.
• 1400 people are employed in Aker BP, and we are growing, in 2018 we will hire nearly 300 new colleagues

Aker BP is owned by Aker ASA (40 %), BP (30 %), others (30%).

Aker BP and Aker Solutions are forming an alliance to deliver modification projects on three of Aker BP’s fields.

“We have worked closely with Aker Solutions for many years and are proud to establish this alliance – perhaps the first and largest of its kind on the Norwegian shelf. The agreement is in line with Aker BP’s strategy of entering into long-term, predictable agreements with partners,” says SVP Projects Olav Henriksen in Aker BP.

The alliance agreement is based on the framework agreement that BP Norge and Aker Solutions signed in 2015. It comprises all modification work on the offshore installations on Valhall, Ula and Skarv. Aker Solutions’ fabrication workshops in Egersund and Sandnessjøen will also deliver work through the Modification Alliance.

Joint organisation

An organisation for the Modification Alliance was established in April. The organisation, with nearly 500 people, is co-located in Stavanger.

“We know that we depend on both us and our suppliers evolving in order to compete in a future market. Aker BP and Aker Solutions have worked together to streamline work processes in recent years. There was still a strong desire from both companies to establish an alliance for modification projects,” says VP Modification Projects in Aker BP, Marie Ravnestad.

“We have done a lot of work to describe how to define the scope of work for each installation. It was important to establish an agreement with common incentives to secure that good results reward both parties,” says Ravnestad.

Goal is to become leading

The alliance agreement was signed on 6 July. An important milestone for Aker BP, according to SVP Projects Olav Henriksen.

“Our goal is to become the leading project organisation for modifications on the Norwegian shelf. With the expertise and experience that these two companies have accumulated, there is no reason why we cannot reach that goal together,” says Henriksen.

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«Per today it is not considered to be commercial, but we will re-evaluate the volume and commerciality if it is concluded that the gas is in gas hydrate phase,» says SVP Exploration in Aker BP, Gro Gunleiksrud Haatvedt.

Click here to read the press information from the Norwegian Petroleum Directorate.

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