Reduces CO2 footprint from supply vessels

Aker BP works to reduce CO2 emissions in all parts of the business, including emissions related to supply vessels.

In recent months, Aker BP has taken several steps to achieve the company’s goal of reduced emissions. Emission reductions are important from an environmental and sustainability perspective as well as a financial perspective.

Aker BP, together with its strategic partners, Solstad, Eidesvik and Simon Møkster, have decided to install batteries on three of the supply vessels, which are on long-term contracts.

Use of batteries can reduce emissions from vessels by 10-12%, and will reduce CO2 emissions from these vessels by more than 2,500 tonnes per year.

Aker BP has previously installed a batteries on two of its vessels, NS Orla and NS Frayja. All supply vessels, on long-term contracts for Aker BP, will be powered by batteries within a year.

Aker BP has also entered into a new and exciting collaboration with Eidesvik to adopt new technology and convert existing vessels to low-emission vessels. Since 2020, Eidesvik has provided management to NS Orla and NS Frayja. These vessels will be included in the project in addition to one or more of Eidesvik’s own vessels.

Viking Lady
Far Solitare
Stril Polar, photo credit: Harald Walderhaug

Giving back to the local community

Whenever Aker BP is required to upgrade equipment, the company aims to reuse or recycle the items being replaced. This has benefited the local communities in the Helgeland region, home to one of Aker BP’s offices. In 2020, the company donated TVs, PCs, fire hoses – and parts of old drill pipes.

Aker BP’s office in Sandnessjøen has existed since the early 2000s, due to the development and operation of the oil and gas field Skarv. During that time the company has tried to be a positive part of the local community by supporting schools and education, stimulating local businesses and creating positive ripple effects.

Donated hundreds of TVs and PCs

Each year, Aker BP donates items the company no lon-ger has use for to communities on the Helgeland coast. In 2020, more than 60 PCs were given to schools in the area and 337 TVs were distributed to 20 recipients including schools, educational institutions, charitable organisations and nursing homes.

When the municipal health service and Helgeland Hospital in Sandnessjøen experienced equipment shor-tages during the COVID-19 pandemic, Aker BP donated infection control equipment, which was a welcomed gift during difficult times.

In addition, 20 organisations and 5 vocational schools received more than 3,000 coveralls because Aker BP needed to reduce its stock.

Three kilometres of fire hose

In 2020, Aker BP donated 3,000 meters of fire hoses to Ytre Helgeland Fire and Rescue. The fire hoses came from the Skarv FPSO, they are a maximum of 10 years old and have never been used. The hoses must be re-classified for offshore use every 10 years, which is very expensive. Aker BP therefore decided to replace them and donate the old stock.

New life for old drill pipes

Aker BP has even found a new use for old drill pipes from the Skarv field. They have been given a new life at various volunteer organisations, which have used them to build secure, long-lasting structures for leisure and outdoor purposes.

One team against covid-19

When the pandemic hit the world in spring 2020, Aker BP had to respond quickly to prevent infection offshore. Drastic measures and rapid action prevented outbreaks of covid-19 on Aker BP’s installations.

Aker BP reacted promptly when covid-19 developed into a rapidly-evolving pandemic. The main priority was to protect employees from contracting the virus
and to maintain production from all of the company’s assets. It was therefore crucial to prevent virus outbreaks offshore.

A response team was established and tasked with identifying and creating sufficient barriers. The team represented a broad range of disciplines from across the Aker BP organisation, many of which are members of Aker BP’s emergency preparedness team.

Testing, quarantine hotel and chartered flights

At the same time as office staff were ordered to work from home, a number of barriers were being established. Aker BP booked a hotel as a quarantine venue for
workers who had to use public transport to get to the heliport. After sufficient time at the hotel without symptoms, they were allowed to travel offshore.

Aker BP also decided at an early stage to purchase its own equipment for covid-19 testing. Testing is now done at the hotel, in Brønnøysund and on all the installations.

Aker BP was the first operator on the NCS to test all personnel before travelling offshore. In addition, an airplane was chartered and used to transport people from several cities to the heliports at Sola and Brønnøysund. This made it easier to avoid
exposure from other travellers.

Clear communication of the established rules and instructions is essential to enforce the barriers. The response team use the Aker BP social channel Workplace to keep
the rest of the company informed about the status of and changes in regulations or procedures. Workplace is also used to stream frequent digital town hall meetings
where the executive management team shares information and answers questions from the employees. Staff from suppliers comply with the same rules as Aker BP’s
employees, which is another reason for the successful virus prevention on Aker BP’s offshore installations.

Sustainable development using robot technology

Technology development is important for Aker BP. The company constantly works to achieve better and more efficient ways to accomplish its tasks.

Robot campaign

Together with the company Remotion, Aker BP has developed robots that can wash, water-jet, sandblast and paint the sides of ships in an operation that is both efficient and kind to the environment.

The technology was recently tested on a ship at Farsund. Aker BP plans further testing offshore on Alvheim this summer.

The robot will have to undergo extensive testing before it can be commercialised. Strict requirements apply for the system and it will have to be effective, considering both operations, performance and quality.

A smart concept can translate into benefits for the operator in the form of better HSE and improved efficiency.

– Sustainability is important for us. Robocoat collects all waste into containers on deck. Clean water is discharged to sea following a treatment process, and residuals are transported to shore for prudent waste management. This involves considerable volumes of microplastics and chemicals that could otherwise have ended up in the ocean, says Ingvill Bækø, project manager for Aker BP’s technology community.

Endurance

The project started with concept studies in the autumn of 2018. Since then, the companies have collaborated in a joint effort to develop a functional and useful robot, with the potential of improving a difficult manual work process as regards hull maintenance.

– It’s been a demanding project, with both ups and downs, both technically and practically, says Bækø.

– It’s been about not giving up, but rather resolving issues one by one. Innovation and technology development are demanding processes, and the result isn’t always good enough to commercialise the product.

The robot has run the gauntlet in recent years. For those of us working in the project, it’s great to see that we’re approaching the end, and it’s starting to work as intended. We’re very pleased.

Ingvill Bækø
Project manager in Aker BP, technology development

Robots with jobs

Ingvill predicts that multiple robots will be introduced in the workplace in the years to come.

– We expect that robots will complete tasks faster and safer. The robots won’t take over or replace people, but they will be good tools that operators will use in their work, Ingvill explains.

Sustainability is important to us. Robocoat will collect all waste into containers on deck. After a cleansing process, clean water will be released to sea and the residue will be taken to shore for responsible disposal. This relates to large volumes of microplast and chemicals that would otherwise have ended up in the ocean.

Ingvill Bækø
Project manager in Aker BP

Multiple exciting projects

Aker BP rarely develops technology on its own; we rely on suppliers to realise the projects.

– Now we’re working with skilled companies in several exciting technology development processes. This is a positive collaboration where we both need each other to succeed. Once the technology is qualified, it will be available to all operators on the market,” explains Thomas Bognø, VP for Concept Development and Technology at Aker BP.

– When operators and suppliers work together like this, they add to the toolbox, which will benefit multiple industries and contribute to sustainable industry in Norway, Thomas concludes.

This is only one of several important tests in 2021. Join us on this journey.

Thomas Bognø
VP Concept Development and Technology in Aker BP

Sustainable plugging with new technology

Aker BP was the first operator worldwide to use bismuth alloy to plug the top section of old oil wells. The technology is now used on 30 wells on the Valhall field. That means safer, permanent well plugging.

The gigantic Valhall field in the southern part of the North Sea has produced over a billion barrels of oil equivalent. Old oil wells must be plugged to make room for new wells that will ensure 40 more years of production from Valhall. In fact, the ambition is to produce a total of two billion barrels from the area.

“We’ll continue to work on Valhall for many decades to come. That means we have to make sure that we shut down and abandon old wells safely, so that it is safe for us to be there when we continue to produce and drill new wells at the same time. We use the best available technology, and in this case, in the top part of the old wells, that means bismuth,” says Martin Knut Straume, who is Aker BP’s chief engineer for well plugging.

Qualifying bismuth technology

Laurent Delabroy, Egil Thorstensen, Kjetil Vadset and Martin Straume has all participated in the qualification of the bismuth technology in Aker BP.

Modernising an old giant

Aker BP has already started removing the old field centre on Valhall. The living quarters platform was removed in 2019. Another two installations will disappear over the next five years. All wells connected to the old drilling platform will be permanently plugged over the course of 2021.

“To put it simply, we’re putting the cork back in the champagne bottle,” says Egil Thorstensen with a smile. “We’re currently installing bismuth plugs in the top section of all the wells; in other words, in the 30-inch casing. That’s the last thing we do before we cut and pull the pipes from the seabed to the platform, and the well is permanently abandoned,” the drilling engineer explains.

He has participated in qualifying the bismuth alloy technology in Aker BP.
Plugging wells on Valhall may pose an additional challenge both due to gas migration to the surface, and due to subsidence and compaction. The seabed around the Valhall field has sunk seven metres since the early 1980s, and the top of the reservoir has dropped about 15 metres.

Cement, which is commonly used as a barrier material to plug wells, can fail when subjected to wellbore or casing stresses resulting from subsidence and compaction events. In the worst case, hydrocarbons in old wells could migrate upwards and potentially leak into the sea.

“Aker BP installed a trial plug over two years ago, and was the first operator worldwide to use bismuth alloy in the top section of the well. When we use this technology, we make sure that the plug is 100 percent impermeable. Gas cannot leak to the surface,” says Thorstensen.

Impermeable

Bismuth is a metal with unique properties that make it particularly well-suited for applications in plug and abandonment operations. As a solid metal, it is completely impermeable. It is also as heavy as lead, making it less prone to contamination during its placement into the well. When melted, liquid bismuth flows like water, giving it the ability to flow into the smallest interstices in the well. When bismuth solidifies, it expands, which helps provide permanent sealing capability inside a wellbore.

Unlike cement plugs, which need to be several dozens of metres in length in order to qualify as barrier, a 2.5-metre-long bismuth plug suffices to provide long term isolation in the well.

November 2020 on Maersk Invincible.

“We’ve been working with the technology firm BiSN in Houston for several years, both offshore and on onshore, to qualify bismuth alloy for well plugging. We installed the trial plug in the field in 2018. Since then, we’ve completed a comprehensive testing regime,” says drilling engineer Kjetil Vadset, and adds:

“In 2020, Aker BP was actually the largest consumer of bismuth alloy on a global basis. That gives some indication of the scale of our operations.

Minimises footprint

Bismuth alloy is more expensive than cement. However, total costs of plugging the top well sections are less due to decreased rig time for these operations.

“Even so, we have chosen to use it on Valhall because of the unique field conditions. For us, this is a matter of making sure that we minimise the carbon footprint from our operations, while ensuring that the wells are plugged and abandoned to the highest standard. Bismuth has what cement lacks: it changes almost instantaneously from liquid to solid when the heating source is removed, it is completely impermeable, and it is not affected by contamination issues,” says lead technical engineer Laurent Delabroy.

During the autumn of 2020 and winter this year, bismuth plugs were installed continuously from the Maersk Invincible rig on the Valhall field centre. The plugs are up to 2.5 metres long and weigh 9 tonnes. Good planning is essential for success. The work has been performed through the Jack-up rig alliance between Aker BP, Maersk Drilling and Halliburton. Time spent per well was cut in half to a record-low 30 hours this winter. This has resulted in significant cost savings and freed up several months of rig time that can now be used for new operations.

“We are incredibly proud of what we’ve accomplished,” says the team responsible for bismuth plugging in Aker BP.

“We succeeded through strong teamwork and close collaboration with our solid technology partner, BiSN. And last but not least, because we are part of a company that dares to use new technology. Aker BP is not only the first in the world to develop and perform this type of operations, we are now the world’s largest users of this technology, and many other oil and gas operators are following suit. That says something about our company,” Delabroy concludes.

In April, plugging of wells at the Valhall field centre has been completed six years earlier and more than five billion Norwegian kroner cheaper than originally planned. Plugging wells is a key part of the modernisation of the Valhall field centre, and thus also in the ambition to produce a total of two billion barrels from the giant in the North Sea. Here Pioneering Spirit removes Valhall QP in 2019.

Extending Valhall’s lifetime with well plugging

Plugging of wells at the Valhall field centre has been completed six years earlier and more than five billion Norwegian kroner cheaper than originally planned. The work has also been delivered without serious incidents. Plugging wells is a key part of the modernisation of the Valhall field centre, and thus also in the ambition to produce a total of two billion barrels from the giant in the North Sea.

The Maersk Invincible drilling rig left the Valhall field centre last week. That marked the end of several years of plugging operations on the field. A total of 30 old wells from the original drilling platform (DP) have been plugged over the course of three campaigns since 2014.

Removing and renewing

Aker BP is operator and Pandion partner in Valhall. First oil flowed from the field in 1982. Since then, over a billion barrels of oil equivalent have been produced from the area – more than three times as much as expected at start-up.

“Plugging wells from the shutdown drilling platform is an important part of the Valhall modernisation. There are considerable remaining resources in the Valhall area, and our vision is to produce from the field up to 2050. We will maximise value creation from the area through new wells, flank developments and new technology.»

Ole Johan Molvig
Valhall Asset Manager

The original QP accommodation platform was removed in the summer of 2019. Over the course of the next few years, the original drilling platform and process platform will also be removed from the field centre. The original Hod wellhead platform, south of the Valhall field, will also be removed and replaced with a new.

The modernisation of Valhall entails major lifts, literally. Here Pioneering Spirit removes Valhall QP in 2019.

Safe and efficient

The first plugging campaign in 2014-2016 was conducted by the Maersk Reacher rig. Maersk Invincible carried out the last two campaigns in 2017-2018 and in 2020-2021.

Originally Aker BP estimated the operational time of the plugging campaigns to 10 years at a cost of NOK 15.5 billion. The work was completed in 4 years and at a cost of NOK 10.1 billion.

Grey line shows years. Blue line shows costs.

“The work to plug the wells has been a success through three major campaigns. The plugging has been carried out safely and efficiently. We have an unrelenting focus on improvement, and that has paid off in shorter operation times and reduced costs. Our alliance partner Maersk Drilling has been a key factor in all the campaigns. I am incredibly proud of the work delivered by teams all across companies both offshore and onshore.”

Tommy Sigmundstad
SVP Drilling and Wells in Aker BP

World-class alliance deliveries

Reorganisation of the value chain through strategic partnerships and alliances is a core part of Aker BP’s strategy. The last plugging campaign on Valhall was delivered by the jack-up rig alliance between Maersk Drilling, Halliburton and Aker BP from September to March.

The original plan was to spend 72 hours per well to plug the top well section. During this winter, the alliance reduced this to as little as 33 hours. Overall, the alliance has delivered the entire scope of work more than two months faster than planned. Because of this, the Valhall asset team was able to rapidly mature a decision on new wells on Valhall Flank North, which means more work for the alliance.

“This shows what we are capable of delivering when we work as one team in the alliance model, alongside the best suppliers in the industry. Together we can exploit the maximum potential of the rig, and constantly push the limits of what we thought was possible,” says Sigmundstad.

“We’re seeing impressive results in the alliance, and this is just the beginning. What really sets the alliance apart from traditional cooperation models, is that we have shared incentives. This way of working results in greater confidence and stronger cooperation. Together, we can increase the efficiency of our operations. It’s a win-win situation, both in the short and longer terms, where we together can create more investment opportunities and even more innovation,” says Chief Operation Officer Morten Kelstrup from Maersk Drilling.

The alliance team on Maersk Invincible. Photo: Øyvind Sætre/Maersk Drilling

Short path to implement new technology

Valhall receives power from shore and has close to zero emissions of CO2 and NOx during normal production. Maersk Invincible has received its power supply from the Valhall field during both its plugging campaigns. Electrification of the rig has been a pioneering project for Aker BP, in line with the strategy to develop solutions that contribute to minimise the environmental footprint of our activities.

Aker BP also works actively to utilise market-leading technology that can result in lasting improvements in the operations, and thus also increased value creation. Several new technologies have seen the light of day in the plugging work – on a worldwide basis.

“The plugging team was given the authority and the funding to start using new technology. We have looked at technology that can contribute to faster, safer and more sustainable plugging of wells. The drivers behind this development have been engineers who have seen a need, found a technology, and contributed to develop it. The road from concept to implementation has been consistently short,” says Martin Straume, the company’s chief engineer for well plugging and abandonment.

Technology within well intervention has been implemented where possible. Nature’s own material, clay, a so-called “shale barrier”, has been used in connection with plugging operations.

“Section milling of cemented casing has been carried out inside larger casing. We have done this to verify that well barriers are in place on the outside of the conductor. This means that we have avoided having to mill or pull entire sections of casing from the surface and down to the relevant depth. This represents up to several weeks of time saved per well, and is an enormous improvement in the plugging work,” says Straume.

The top section of the old Valhall wells have been plugged using bismuth technology. This ground-breaking technology developed by BiSN helps to solve the challenge of potential methane leaks from old wells, and results in lower CO2 emissions compared with cement.

For the first time ever worldwide, Aker BP along with Halliburton and Maersk Drilling has conducted fully automated cementing operations from land. This took place from Aker BP’s offices in Stavanger. The technology increases efficiency, reduces costs and lowers HSE risk.

Preparing Valhall for the future

A little more than one year ago, the first oil flowed from Valhall Flank West. In March 2021, a new Hod platform is nearing completion at Aker Solutions’ yard in Verdal. The concept, implementation model and organisation for the Hod project were copied from Valhall Flank West. Planned production start for Hod is in the first quarter of 2022, and recoverable reserves are estimated at around 40 million barrels of oil equivalent. Aker BP has also now embarked upon studies for a new central platform on Valhall, which will ensure production capacity for future volumes in the area.

“Through new projects like this and the ongoing modernisation of the area we continue to increase value creation from Valhall. This not only creates substantial values for Aker BP and our owners, but also for the greater society through the taxes we pay, and by maintaining a world-class supplier industry,” says SVP Operations & Asset Development Ine Dolve, and concludes:

“I want to extend a big thank-you to everyone who has contributed to the work to plug wells on Valhall. The operation has been conducted efficiently and safely, and through this effort you are all contributing to prepare the giant Valhall for many more years of production.”

Two of the largest rigs in the world was within the 500-meter zone at Valhall field center in the beginning av April. Maersk Invincible was soon leaving the field center after the P&A campaign. Deepsea Stavanger drilled pilot holes in connection with studies for a new central platform on Valhall. Photo: Odfjell Drilling.

Achieving operational excellence

Aker BP is creating a new operating model to improve efficiency and
production. By using the same methods, processes and standards for all operated hubs, operational excellence will become an attainable goal.

Over the past few years, Aker BP has been building strong alliances with key suppliers and taking giant steps into the digital era. Work processes have been optimised and new business models have been tested.


“The next step is to combine the experience and learning from these initiatives and put them into a new operating model applied across all Aker BP’s operated assets,” says Ine Dolve, SVP Operations and Asset Development.

Operational excellence through standardisation

Aker BP’s operated hubs are different in many ways, but the overall goals are the same: Aker BP’s job is to operate its fields with zero accidents, high production efficiency, low costs and low emissions.

“The new operating model covers a broad range of areas, including maintenance activities, barrier management, digital and remote operations, procurement, logistics, and organisational structure both onshore and offshore,” Dolve explains.

Standardisation in these areas is expected to yield significant benefits.

“Firstly, it will drive cost efficiency and safety by making sure everything is done according to best practice. Secondly, it will enable cost and competence synergies through better collaboration across the organisation. Thirdly, it adds scale and speed to Aker BP’s continuous improvement work. It is also an enabler for further digitalisation of manual processes,” says Dolve.

Remote First

The new operating model establishes the concept of “Remote First”. Activities that can safely be performed onshore with the right quality should always be done onshore.

Aker BP already has the building blocks in place. A digital infrastructure with real-time access to data from Aker BP’s offshore installations has been established with help from Cognite. All offshore operators are equipped with handheld digital devices with easy access to data and communication, and onshore collaboration centres remotely support offshore installations and rigs.

Maintenance campaigns

Maintenance represents a significant part of Aker BP’s production costs, and the company believes there is a vast potential for savings by optimising these activities.

“In the future, most of Aker BP’s maintenance activities will be bundled in campaigns, focusing on one installation at a time. Each campaign will be planned in detail to ensure high precision and quality, which is expected to be more efficient and lead to more uptime and higher production efficiency,” Ine Dolve concludes.

It’s always possible to improve. Aker BP sees the new operating model not as a finished product, but rather as a new, continuous process.

Ine Dolve
SVP Operations and Asset Development

Invitation to share data

Aker BP is inviting oil and gas companies to contribute to the Next Generation Discharge and Emissions Tracker. The tracker is a digital application that will optimise, track, and eventually develop better and more efficient practices for chemical consumption and discharges in the oil and gas industry.


The tracker will deliver value for you in three ways:

  • It provides process engineers with a digital tool to monitor and minimise emissions to air and chemical discharges to sea, ensuring optimal efficiency
  • It enables operational optimisation across assets
  • It increases transparency for authorities and other stakeholders through seamless reporting

The Next Generation Discharge and Emissions Tracker is developed by the Centre for the Fourth Industrial Revolution (C4IR) Ocean, Aker BP and Cognite.

Aker BP provides the tracker with data and operational expertise from offshore facilities and has decided to make the data openly and publicly available through the non-profit Ocean Data Platform, also managed by C4IR Ocean.

Using this data will allow us to address negative environmental impacts from our industry and build solutions that reduce our environmental footprint. The effect will be much larger if we have access to share more data.

Join the project by by contacting Bjørn Tore Markussen, CEO of C4IR Ocean.

We are one team

OneTeam is one of the core principles of Aker BP. This is why diversity and inclusion is at the top of the agenda.

The OneTeam culture has multiple dimensions. Cooperation with suppliers, alliances, land and sea is at the very centre of how we work at Aker BP. But an even more fundamental aspect is how employees interact on a personal level by actively leveraging each other’s strengths to create good results and take care of individuals in a safe, secure, and inclusive working environment.

Aker BP was created by mergers and acquisitions. That means that the workforce is a mix of employees with different backgrounds, many of which came from BP and Det norske following the merger in 2016. A significant number of employees previously worked for other companies, acquired along the way.

– This makes the workforce at Aker BP a fantastic mix of different backgrounds and cultures. While we are creating the leading exploration and production company, we are merging all this knowledge into a shared OneTeam culture. A core principle at our company is that all of our employees are equal, no matter where they come from.

Brit Tone Bergman
Vice President People & Organisation in Aker BP

Being able to leverage the best in everyone assumes that our workforce has all the skillsets we need. Aker BP recognises a talented and diverse workforce as a critical competitive advantage. This is why the company has embraced diversity and inclusion as part of its strategy to source, retain, and manage unique talent, skills, knowledge, and experience. This already governs everyday working life in the company.

Diversity means all the ways we differ. It includes visible differences such as age, gender, ethnicity and physical appearance, and underlying differences such as thinking styles, religion, nationality, sexual orientation and education. Diversity also means we are equal no matter which company employees have worked at previously.

Inclusion means creating a working culture where differences are valued and used, where everyone can develop skills and talents consistent with our values and business objectives. The aim is to make Aker BP an organisation where people feel involved, respected and connected – where the richness of ideas, backgrounds and perspectives is leveraged to create business value.

In 2021 all employees in Aker BP went through a mandatory “Unconscious Bias” course. Unconscious bias refers to our assumptions and impulses that affect our decisions and, therefore, the actions we take. Our personality, culture, and values can affect them, but they are unconscious. We are unaware that they are driving some of those decisions and actions.

– We want our employees to be aware of how this affects all of us all the time. The more we can become aware of these biases, the better decisions and actions we can take.

Brit Tone Bergman
Vice President People & Organisation in Aker BP

Diversity in terms of equality is another focus arena for Aker BP. Men have traditionally been overrepresented in the oil and gas business, and Aker BP is no exception. Therefore, various efforts have been implemented over the last years to meet this challenge. One such effort is participation in the FiftyFifty program run by AFF, where the focus is the unrealised potential that lies in an equal and diverse working life.

FiftyFifty brings women from large Norwegian and international companies from different industries together to define specific actions and objectives to succeed in recruiting more female leaders.

– In terms of equality in Aker BP management, we’re on a very positive track, where we are closing in the gap and targeting a 50-50 gender balance.

Brit Tone Bergman
Vice President People & Organisation in Aker BP

Ærfugl reduces CO2 per barrel by up to 30 percent on Skarv FPSO

The Ærfugl project shows how profitable developments go hand in hand with low CO2 emissions.

Aker BP manages natural resources to create value. This is why Aker BP is maximising value by utilising available resources in the best possible manner, keeping costs low and emissions at a minimum. To reach these goals, the people in Aker BP always strive to outperform themselves by always doing their very best and always seeking improvement. The Ærfugl project is an excellent example of what they do and how they do it.

Delivered as promised

Ærfugl is an almost 60-kilometre-long narrow gas and condensate field in the Norwegian Sea. It is located near the Skarv field, about 200 kilometres west of Sandnessjøen.

On 12 November 2020, operator Aker BP and partners Equinor, Wintershall Dea and PGNiG reported that production had started from Ærfugl Phase 1. This was on the same date as promised in the Plan for Development and Operation (PDO) in 2017.

Aker BP, along with its alliance partners, suppliers and licence partners has not only completed the project safely, efficiently, on time and within budget during a time with a “black swan”; COVID-19 and a substantial decline in the price of oil; it has also achieved major improvements since the PDO was approved, including significantly accelerated development of Phase 2, from 2023 to 2021, and improved project economy.

Lower break-even

Ærfugl is the first new field tied back to Skarv, and it is expected to increase the gross asset production from around 85,000 to 140-150,000 barrels of oil equivalent per day.

When Ærfugl Phase 2 is completed, the CO2 emissions per produced barrel of oil equivalent on Skarv will be reduced by up to 30 per cent by 2022. This is due to the increased share of production from Ærfugl. In addition, the production from Ærfugl comes in at high inlet pres-sure before processing, which eliminates the need to run an extra compressor to export the gas to the pipeline.

The Ærfugl project strengthens Skarv both commercially and in terms of environmental footprint. The Skarv area has high prospectivity and a multitude of possibilities, and Ærfugl gives us the opportunity to study sustainable power supply solutions in the future.

Ine Dolve
Senior Vice President, Operations & Asset Development

Ærfugl has become one of the most profitable development projects on the Norwegian continental shelf. The initial estimated break-even price was USD 18.5 per barrel of oil equivalent (converted from gas) at PDO submission. Due to increased reserves, earlier production, a stronger dollar and accelerated tax depreciation, the break-even price has improved to less than USD 15 per barrel.

Ærfugl is the first major step to transform the Skarv facilities into a major hub for the surrounding discoveries. The Skarv journey has only just begun.

Sverre Isak Bjørn
Vice President Operations & Asset Development in the Skarv area

Innovative alliances

Ærfugl is an alliance project, and three alliances have been involved in the execution. Innovation has allowed the alliances to adopt new technology. They built the first digital twin of both topside, wells and subsea, and set up a large degree of automation. They also installed the world’s first Electrically Heat Traced Flowline (EHTF).

In the alliances, Aker BP works with the best suppliers in a long-term perspective. Together they succeed by working in an integrated team. All alliance partners are equal, they share risk and have incentives that reward all parties when they deliver. They reap the best experience and knowledge from each other and put the best person on the job – regardless of company. Mutual respect and trust enable them to own challenges and solutions together. This is exactly what alliances are all about. It is not them and us, it is one team.

Aker BP’s goal is to produce oil and gas as efficiently as possible to return greater value from our oil and gas resources to investors and society. The successful start-up of production from Ærfugl Phase 1 demon-strates the ability to deliver on this strategy through the excellent performance shown by the Aker BP project team and alliance partners, despite extremely challenging times.