The energy transition is “the toughest job in the world”. Aker BP has already gotten started, alongside the other companies in Aker.

Energy is inextricably linked to the lives people lead all around the world. That’s why a global upheaval in the energy chain affects each and every one of us. These changes require a massive financing effort. The same can be said for new industries and jobs. At the same time, we want to secure the welfare state. This poses an enormous challenge.

No one can do this job alone. That’s why we are now calling for cooperation with the rest of the business community and the public authorities.

The Aker companies are fully engaged in contributing to cutting emissions, producing renewable energy and creating new jobs. We solve major challenges by combining a willingness to invest and new digital technology with the expertise of creative problem-solvers.

Aker Horizons has launched 2025 ambitions to contribute:

• At least 100 billion kroner in investments in renewable energy and green technology.
• Emission cuts of 25 million tonnes of CO₂ per year, equivalent to half Norway’s annual emissions.
• Ten gigawatts of renewable energy capacity, equivalent to 25 per cent of Norway’s total power consumption.

These investments would be unthinkable without dividends from Aker BP, and the foundation is our expertise and experience as a supplier and operating company in the oil industry.

Aker is a miniature version of Norway. Income from the oil and gas activity is now laying the groundwork for new industries. This is why we are pursuing at least two thoughts simultaneously, so that new sectors can grow from existing industry. Tax revenues from us are therefore not just important for the welfare society, but are also crucial for the transition to a renewable society.

There is no doubt that the world will become less dependent on fossil energy. Even so, oil and gas production and the low-emission society will have to live side by side for several decades to come.

So, while more and more of the energy we use will become renewable, there will be a need for oil and gas for a long time to come. This includes oil and gas that is not just used for energy, but also as raw materials for products we surround ourselves with in our day-to-day lives.

We believe that those who produce oil and gas with the lowest emissions and lowest costs will be the winners of tomorrow. That’s what we are aiming for, and we’re starting by reducing our own emissions.

But Aker BP won’t stop there. Being stewards of a shared natural resource means that we are also stewards of the trust placed in us. We embrace this responsibility. The entire oil and gas industry must therefore understand the gravity of the current situation. Our shared assets must be managed in a way that gives more back to society.

The Fixed facilities alliance, between Aker BP, Aker Solutions and ABB, has delivered yet another platform on time, with a high level of quality and with no harm to people or the environment. The topside was installed just one year and two months after the first steel cut.

The 2000-tonne topsides were placed on the jacket on the Hod field in the southern part of the North Sea on Sunday.

“The platform is delivered from a Norwegian yard and with Norwegian subcontractors. It is delivered according to plan, in just 14 months, in the middle of a pandemic. This is an enormous achievement. Congratulations to everyone who has contributed,” says Aker BP CEO Karl Johnny Hersvik.

Effect of the temporary tax changes

The first steel for Hod B was cut in Aker Solutions’ yard in Verdal, just hours after the Norwegian Parliament adopted temporary changes in the petroleum tax in June of last year. The tax changes were introduced to stimulate increased investments, and thus secure Norwegian jobs in an extremely demanding period for the oil and gas industry.

More than a hundred suppliers across Norway have contributed to the Hod development. At peak, around 550 people from Aker Solutions, the alliance and subcontractors have been working on the Hod B project at the yard in Verdal. More than 50 apprentices have completed large parts of their vocational training on the project.

“Through projects like Hod, we are creating value both for the company, partners, alliance partners, owners and the Norwegian society at large. We are also helping to sustain a world-leading supplier industry. I am especially proud of the fact that, through the Hod project, Aker BP has contributed to the vocational training of 50 apprentices. These apprentices, and the industry in general, have expertise that will be essential in the years to come. Several of the apprentices are already headed for renewable projects in Aker Solutions, such as the delivery of suction anchors and seabed installations for Hywind Tampen. This is the green energy transition in practice,” Hersvik says.

Improvements through alliances

The first normally unmanned platform delivered by the fixed platform alliance was Valhall Flank West. Hod B is a copy. 

“Through Hod B the alliance is delivering a product with very high quality, and we are incredibly proud of what they have achieved. We have learned important lessons in the Valhall Flank West project, have improved, and now see that we are able to work even faster and more efficiently with our alliance partners on Hod B. This shows that the alliance model works, and that is also why this model is an important part of Aker BP’s strategy,” says project manager Rannveig Storebø.

A total of five alliances are contributing to the Hod project. These alliances are integrated from start to finish in the project and by doing this, Aker BP has taken the alliance model to a new level. 

Important for the future of Valhall

Hod B will be remotely operated from Valhall, and the field will have extremely low CO2 emissions thanks to power from shore. Aker BP and partner Pandion expects Hod to produce 40 million barrels of oil equivalent.

“We look forward to bringing Hod on stream in the first quarter of next year. Aker BP will continue to increase value creation from the giant Valhall through new projects and a major ongoing modernisation of the area. Hod is an important contribution towards achieving the Valhall ambition of a total of two billion produced barrels from the area,” says Valhall Asset Manager Ole Johan Molvig.

Several subsea campaigns will be conducted in the Hod project leading up to production start in 2022, such as installation and connection of the gas lift pipelines, production flowlines and umbilicals. Modification work is under way at the Valhall field centre, and the Maersk Invincible drilling rig will be arriving this autumn to drill production wells.

The Hod B jacket is now safely installed and ready to receive the topsides later this summer. The installation was accomplished just one year after the first steel was cut in the project.

The Hod field will be developed with a normally unmanned installation which will be remotely operated from Valhall. CO2 emissions from the field will be very low as a result of power from shore.

The first steel for the platform was cut by Aker BP CEO Karl Johnny Hersvik at the Aker Solutions yard in Verdal on 9 June 2020. This occurred mere hours after the Parliament adopted temporary changes in the petroleum tax regime.

«I remember the day as an enormous relief. The preceding months were marred by disappointments and bad news. Oil prices were low, uncertainty was high, and we’d spent the last few months cutting costs and investments. Along with our alliance partners, we were able respond quickly and get the Hod project back on track. It’s absolutely fantastic that the jacket is in place on the field now, just one year later. Congratulations to everyone involved!» says Karl Johnny Hersvik.

Securing jobs

The fixed facilities alliance between Aker BP, Aker Solutions and ABB is delivering the Hod B platform. Both the jacket and topsides are being built at Aker Solutions in Verdal, and the work has secured a number of jobs at the yard.

«The temporary tax changes were introduced last year to stimulate increased investments and thereby secure Norwegian jobs in very challenging times for the oil and gas industry. Hod demonstrates that we can deliver on the task set out by the politicians. We can achieve this thanks to the close cooperation we’ve built over time with our alliance partners ,» Hersvik says.

Faster and more efficient
The first normally unmanned platform delivered by the platform alliance was Valhall Flank West. This was a fantastic delivery. Hod B is a copy.

«We now see that we work even faster and even more efficiently together on Hod compared to the Valhall Flank West project. This shows that the alliance model works. It’s also why this model is an important part of Aker BP’s strategy and the key to delivering profitable projects in a challenging market moving forward,» says SVP Projects Knut Sandvik in Aker BP.

Overall, Aker BP is planning to invest about 135 billion kroner in field development projects on the Norwegian shelf leading up to 2028. This will add more than 500 million barrels to Aker BP’s resource base, and more importantly – it will bring robust activity and a considerable number of jobs for several suppliers across the country.

«We currently have Hod B and three other projects in the execution phase. Nine projects are in early phase and working toward submitting plans for development and operation by the end of 2022,» Sandvik says.
Watch video – jacket installation

Alliance project
The Hod field is operated by Aker BP, which owns 90 per cent. Pandion Energy is the partner with a 10 per cent ownership interest. A total of five alliances are contributing to the project. The alliances are integrated from start to finish in the project, which means that Aker BP has taken the alliance model to a new level.

«Despite the Covid-19 pandemic, the project delivers according to plan. It’s fantastic. We succeed through our cooperation with our alliance partners. The alliance model allows us to integrate deliveries in an entirely different way than we could in a traditional customer-supplier model, which is incredibly motivating,» says project manager Rannveig Storebø.

The Hod B platform is scheduled to sail from the Verdal yard in August. At the same time work is under way to plan remaining activities to complete the project. Multiple subsea campaigns will be conducted to install and connect the gas lift pipe, production flowline and umbilical. Integration work is under way on Valhall and the Maersk Invincible drilling rig will start drilling production wells this autumn.

Important for the Valhall giant
Hod B is expected to contribute 40 million barrels of oil equivalent and will be important for Valhall to reach the ambition of a total of two billion produced barrels from the area. Production is scheduled to start in the first quarter of 2022.

«Projects like Hod B allow us to create considerable values both for us, our partners, alliance partners, owners, as well as the Norwegian society. We’re also contributing to maintain a world-leading supplier industry. This is an industry with expertise that is fundamental in the energy transition,» Karl Johnny Hersvik concludes.

Aker BP produces oil and gas with low emissions. The company aims to achieve a 50% reduction in its own greenhouse gas emissions in the 2030s and down to zero in 2050. In addition, Aker BP cooperates to reduce emissions for its suppliers . An example of this is the logistics and maritime department’s work to reduce indirect emissions from vessels.

Technical and operational initiatives

An important technical improvement is battery-powered vessels. Aker BP will electrify all supply vessels on long-term contracts within 2022.

Hull washing is an operational initiative, for which Aker BP is now investigating the potential. Hull washing reduces the resistance in the water, and thus reduces both fuel consumption and greenhouse gas emissions. There is little documentation on the measure’s effect on supply vessels, and therefore Aker BP is now studying the benefits of this initiative.

Study for measuring effect

In the winter of 2021, the company planned to wash the hulls of four vessels, as well as to conduct a study to document the effect. First, emission measurements were performed from the vessels. Similar measurements were made after the hulls were washed. The data base was limited for some of the vessels, but one could still see a clear connection between how much growth, which had been removed from the hull, and the development in fuel consumption. Aker BP has also been in dialogue with Equinor, which has conducted similar studies and measurements previously. This data was also used as a basis for comparison in the study.

Sharing knowledge with the industry

Aker BP has taken initiative and gathered seven other operating companies to share experiences, documentation, and findings from the study. The initiative was met with commitment and gratitude. By sharing knowledge and experiences, the company will contribute to a more sustainable oil and gas industry in Norway.

Operator Aker BP and the partners in Skarv (Equinor, Wintershall Dea and PGNiG) report that production has started from Gråsel in the Skarv area, four months ahead of the original schedule.

“I’m incredibly proud of the project team and our licence partners: Only six months have passed since the joint venture approved the investment decision to develop Gråsel. This must be one of the fastest project implementations ever on the Norwegian shelf,” says Aker BP CEO, Karl Johnny Hersvik.

“Together, we have once again completed a profitable project safely, efficiently and within budget – and on top of all that – much faster than planned when the project started,” Hersvik adds.

The Gråsel reservoir is situated over the Skarv reservoir in the Norwegian Sea, about 210 km west of Sandnessjøen. The reservoir contains around 13 million barrels of oil equivalent. The oil and gas are produced by utilising available capacity on the Skarv production vessel (FPSO).

Total investment costs for the Gråsel project are around NOK 1.2 billion.

Break-even price of USD 15 per barrel

The development consists of a new producer drilled from an existing well slot on the Skarv field, with pressure support from a shared injector for Gråsel and Tilje. 

“The stimulus package adopted by the Storting (Norwegian Parliament) last June, which entails more rapid tax depreciations, contributed to make the project even more robust and has accelerated the timeline,” Dolve adds.

Aker BP’s objective is to produce oil and gas in the most cost-effective way possible so as to maximise value creation for our owners, partners and the greater society – with the lowest possible impact on the climate.

“The Gråsel project is a superb example of this. The successful early-phase work and the safe and efficient project implementation in cooperation with our alliances is a model for future developments of minor discoveries,” says Dolve.

Seamless cooperation

The record-fast implementation can be credited to good fortune with early access to a drilling rig – and an agile project team using the opportunities that arose:

“In the planning phase, there was some uncertainty with regard to when we would have access to a drilling rig. When the pieces started to fall into place, the Deepsea Stavanger rig was ready and waiting for us as early as April. Then all we had to do was get to work,” says Nygård.

“The drilling campaign was carried out safely and efficiently, which helped to put us well ahead of the plan. It was also the first time in Aker BP history that a well intervention vessel was used to temporarily plug the injection well. This led to substantial cost reductions by reducing rig time,” says Nygård.

Production from Skarv has been shut down for 25 days in May and June due to a major planned turnaround (TAR). After planned maintenance and modifications were completed, production was first resumed from the Skarv and Ærfugl Phase 1 fields – before Gråsel was put on stream.

Nygård emphasises that the project has still not crossed the finish line.

“We still have the final stretch with the injection well, which is necessary to maintain pressure in the Gråsel reservoir. Among other things, this work will require rig time on the field, and the plan is to do this during the third quarter.”

Increased production and extended lifetime

“Production start-up from Gråsel is a new and important milestone in this growth strategy. Over the course of the year, the goal is to also bring Phase 2 of the Ærfugl development on stream,” says Bjørn.

“Start-up for Ærfugl and Gråsel will take Skarv back to a plateau production of over 170,000 bbls per day. In addition, the production increase will contribute to a reduction in CO₂ emissions per produced barrel from Skarv FPSO of as much as 30 per cent from 2022, and the Skarv lifetime will be extended by five years,” according to Bjørn.

A key part of the recently completed turnaround on the Skarv vessel was an upgrade of production capacity in the gas facility. This also means a further increase in capacity to accept production from other discoveries in the area.

“We’re maturing several development projects with the objective of making investment decisions by the end of 2022. The ambition is to phase in production from these developments over the next four-to-five years. As of today, the Shrek, Idun Nord, Alve Nord and Ørn discoveries are included in our ‘Skarv Satellite project’,” says Bjørn.

“We also have significant exploration ambitions in the Skarv area, and we’re working on a major exploration campaign including both operated and non-operated wells in 2022, Bjørn adds.

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.

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.

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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.

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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.

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.

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.

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.

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.

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.

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.

“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.