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.

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.

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.

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.

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.

• Watch video of automated cement operations from land

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.”

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.

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.

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.

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.

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.

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.

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.

Interest in working for Aker BP has reached record levels: 1,721 people have applied for summer jobs this year, more than one thousand more than last year.

“This shows that young people still see major career opportunities within oil and gas,” says People Development Manager Brit Tone Bergman.

The sharp increase in applicants for summer jobs confirms a trend towards record-breaking interest in securing a job in Aker BP.

Last year, the company received 1,400 applications for 10 graduate positions, an increase of 35 per cent from the previous year. And there were more than 800 applicants for 11 apprentice positions, primarily offshore. That’s also a record.

“It’s interesting and gratifying to note that so many young people want to take their first career steps into our industry, even during such unstable times and with the discussions under way all around us. We need the brightest minds, and we need a broad and diverse workforce in order to deliver on our ambitious strategy,” says Bergman about the applicant bonanza to Aker BP.

42 positions

Aker BP advertised a total of 42 positions within a broad range of disciplines ranging from geo and process disciplines to digitalisation, risk management, project management, drilling and wells, logistics, finance and commercial analysis. Some of the positions had nearly 150 applicants.

All of the applicants will be screened, and relevant candidates will undergo interviews before the selected candidates receive offers of summer jobs.

Key role

Bergman emphasises that young people who choose the oil and gas industry will have an opportunity to make significant contributions, also to the energy transition:

“Those who start work for us will contribute to create considerable values that will also benefit the broader Norwegian society. At the same time, we work hard to reduce discharges and emissions from our activities, and we contribute to develop new technology and new digital solutions. We are a part of the solution to the climate challenges the world is facing, and Aker BP wants to be at the forefront of transitioning the industry,” says Bergman.

Aker BP’s ambition is to take a leading role in transforming the industry to become safer, more efficient, and more environmentally-friendly. The cleanest oil and gas in the world will be produced in Norway.

In the transition to using more sustainable energy, Aker BP plays a key role by reducing its own emissions, supporting the development of green technologies, returning value creation and sharing knowledge and technological solutions.

“As one of the most active and forward-looking companies on the Norwegian shelf, Aker BP is uniquely positioned to play an important role in the green transition. We empower our employees, so they have an opportunity to have an impact on this development, and to make a difference,” Bergman adds.

Rapidly growing company

Aker BP is the operator of the Alvheim, Ivar Aasen, Skarv, Ula and Valhall field centres, and is a partner in the Johan Sverdrup field.

The company has serious growth ambitions, and plans to invest nearly NOK 135 billion on the Norwegian shelf over the next eight years. This will greatly increase our production in the years to come.

Aker BP will also contribute significant values to society at large in the form of taxes over the next several years;

• Given an average oil price of 50 dollars leading up to 2028, we estimate that we will pay about 60 billion Norwegian kroner in tax.
• Given an average oil price of 65 dollars, we estimate that we will pay 110 billion kroner in tax over the same period.

Operator Aker BP and the Skarv partners (Equinor, Wintershall Dea and PGNiG) have decided to develop the Gråsel discovery in 2021.  

The partners approved the final investment decision (DG3) for the Gråsel development on 17 December. 

The Gråsel reservoir, which extends over seven kilometers and is two kilometers wide, is situated above the Skarv reservoir in the Norwegian Sea, approx. 210 kilometers west of Sandnessjøen.  

Gråsel holds a total of around 13 million barrels of oil equivalent. The oil and gas production will utilize available capacity on the existing production vessel (FPSO) on the Skarv field. Total investment costs for the Gråsel project are around NOK 1.2 billion.  

– Based on a development solution with reuse of existing infrastructure, this project has become very profitable. The break-even-price is around USD 15 per barrel, says Mette Nygård, project manager for Gråsel. The tax measures adopted by the Storting in June, which entails faster tax depreciation, has made the project even more robust and accelerated the development.

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

The successful early-phase work with Gråsel will be used as a model for future developments of smaller discoveries, which is one of Aker BP’s prioritized areas. Gråsel will also contribute to lifetime extension for the Skarv FPSO. 

The first oil from Gråsel is planned for the fourth quarter of 2021, in the same period as Ærfugl phase 2 will come on stream. 

– This will be the first time Aker BP links two projects to the same field center in the same year. This will be a milestone for the company. It also showcases how the excellent alliance collaboration with our suppliers contributes to safe and efficient project implementation, says Ine Dolve, SVP Operations and Asset Development at Aker BP. 

PS: Gråsel = grey seal in English 

The Hod development, which was kicked off in June as a direct consequence of the Storting’s stimulus package for the petroleum sector, is providing activity and jobs for supplier companies all across Norway: To date, Aker BP has awarded one hundred contracts worth over one million kroner for construction of the Hod B platform.

The Hod development is the first in a series of development projects that will be realised during the temporary changes in Norwegian petroleum taxation that were adopted in June. The development plan (PDO) was approved by the Ministry of Petroleum and Energy on 8 December.

Contracts signed in nine counties

Three-quarters (75 per cent) of the contract values for construction of the Hod B platform and subsea installations have gone to Norwegian supplier companies.

The million-kroner contracts have been awarded to companies in a total of 23 municipalities in nine counties around the country – from cornerstone firms along the coast of Southern Norway, Western Norway and northward to Sandnessjøen – and also to a diverse range of companies in Eastern Norway. Many smaller orders come in addition to this.

So far, 100 contracts with a face value of more than one million kroner have been awarded to supplier companies.

“Marking the award of the 100^th Hod contract confirms that projects like this create substantial values for the greater society, industry and our owners. The Hod development alone provides thousands of full-time equivalents for a Norwegian supplier industry that leads the world in a great many areas,” says Aker BP CEO Karl Johnny Hersvik.

The Hod field is being developed in cooperation with Aker BP’s alliance partners. The steel jacket and topsides are currently under construction at Kværner’s yard in Verdal, and will be transported to the field as early as summer 2021.

The majority of the 100 awarded contracts over one million kroner are partial deliveries to Aker BP’s alliances.

Quality deliveries

Examples of companies that contribute some of the world’s best knowledge, technology and equipment to Hod include:

• Leirvik AS on Stord (emergency quarters & helideck),
• National Oilwell Varco in Kristiansand (platform crane),
• Beerenberg in Bergen (surface protection),
• Parker Hannifin in Asker (hoses & couplings),
• Autek AS in Drammen (instruments),
• PG Flow Solutions in Holmestrand (pumps),
• Tratec Halvorsen in Kvinesdal (tanks & filters),
• Covent AS in Bjerkreim (air treatment facility),
• Subsea 7 in Stavanger (seabed equipment/SURF),
• Cre8 Systems in Sola (electrical and hydraulic systems),
• Westcon Yards in Vindafjord (deck hatches),
• Karmøy Trading in Karmøy (platform furnishing and fixtures, etc.),
• ABB in Bergen and Oslo (control system),
• Mare Safety in Ulsteinvik (MOB boat),
• Aker Solutions in Moss (umbilicals) and in Sandnessjøen (prefabrication and steel components for the deck).

 “The Hod development consists of many high-quality deliveries from a large number of supplier firms spread across large parts of Norway,” says project manager for the Hod development, Rannveig Storebø.

“The diversity of the signed contracts demonstrates how many expert communities are involved in a project like this,” she adds.

About Hod

The Hod field is being developed with a normally unmanned installation that will be remotely operated from Valhall. The Hod field will have extremely low CO2 emissions due to power from shore.

The field is operated by Aker BP, which owns 90 per cent. Pandion Energy is the partner with a 10 per cent ownership interest.

Total investments in the Hod project are estimated at around NOK 5.7 billion.

Planned production start is in the first quarter of 2022.

• Link to MPE’s press release: Ny utbygging av Hod godkjent – regjeringen.no

The approved PDO for the HOD development was personally handed over by the Minister of Petroleum and Energy Tina Bru, to the robot dog Spot, to catch up from their last meeting; In June, it was Spot who, on behalf of operator Aker BP and partner Pandion Energy, submitted the Plan for development and operation to the Minister.

Hod is one of the first projects to be realized during the temporary changes in Norwegian petroleum taxation that the Storting approved in June.

The Hod development provides activity and jobs for suppliers located in all parts of Norway; Aker BP has already awarded 100 contracts above one million NOK to suppliers in 23 municipalities in nine counties around the country.

The Hod field will be developed in collaboration with Aker BP’s alliance partners with a normally unmanned installation remotely controlled from the Valhall field centre, with very low CO2 emissions due to power from shore.

Aker BP is the world’s first operator to utilise the subsea control system SCILS from Optime Subsea. This system simplifies installation, maintenance and plugging of subsea wells. SCILS allows Aker BP to reduce its costs for control systems in well operations by more than 50 per cent.

“At Aker BP, our goal is to be at the forefront of implementing new technology. Our cooperation with Optime Subsea is proof of this. Solutions like SCILS will allow us to solve our operations in a simpler, safer and more cost-efficient way. Continuous improvements in operations will help make us more competitive in the future,” says Mads Rødsjø, Aker BP’s VP Operations in Drilling and Wells.

Simplifying subsea work

SCILS can carry out a number of well operations without complicated and heavy equipment, and can be used with different suppliers.

“SCILS is part of our strategy to streamline subsea operations. This gives us necessary flexibility and shorter response times. Reducing the weight and footprint of the equipment – which is often shipped around the country and out to the rig – is also positive for the environment,” says Tor Otto Lidal. He is a senior subsea engineer in Drilling and Wells and was part of introducing SCILS in Aker BP.

The system is located next to the well on the seabed. In simple terms, this means moving equipment that is normally on the rig deck to the seabed. This allows us to reduce the size and weight of the equipment. In turn, this will reduce the need for staffing, space, time and costs on a rig.

Traditional solutions mean large containers for umbilicals and associated equipment, including all hydraulics and electricity. This requires several weeks of assembly, takes up space and can weigh as much as 50 tonnes.

Considerable savings

Aker BP signed a framework agreement with Optime Subsea to use SCILS and associated systems in January 2019. The agreement will be in force for two years, with options for two additional years, and was the first agreement signed with the start-up company based in Notodden in Norway.

“When we entered into this collaboration with Aker BP, Optime Subsea changed from a product and systems supplier to a service provider with equipment and personnel in operations. Over these two years of cooperation, Optime Subsea has grown from 25 to 50 employees, which is a direct consequence of a leading player like Aker BP taking a chance on being the first to embrace this new technology. The way we cooperate with Aker BP has also led to further development of SCILS, with new technical and innovative solutions,” says Optime Subsea’s CEO Jan-Fredric Carlsen.

The company was established in 2015. Aker BP and Optime Subsea have been cooperating very closely on the development of SCILS in recent years – as a single team and not as customer and supplier.

Aker BP has used SCILS in three operations. The first was in connection with plugging two wells on Jette in the North Sea in the summer of 2019. Later, it was used in the completion of the Skogul well and the Kamelon Infill Mid well in the Alvheim area in 2020.

“On the Kamelon Infill Mid well, we used SCILS in connection with starting up the well. We’ve estimated savings of more than 50 per cent, compared with a traditional well control system setup – a so-called WOCS,” says Rødsjø. He adds that, with the current activity level, Aker BP projects that the use of SCILS will contribute to a cost reduction of about NOK 15-20 million per year for the company.

Successful smart work in the alliances

Aker BP’s SCILS operations have been carried out from Deepsea Nordkapp. This rig is part of the alliance for semi-submersible rigs between Aker BP, Odfjell Drilling and Halliburton.

“Reorganising the value chain through strategic partnerships and alliances is an important part of Aker BP’s improvement strategy. In the alliances, we’re continuing to work actively to adopt market-leading technology in our operations; technology that yields increased value creation. SCILS is an example of us achieving precisely this, together,” says Rødsjø.

“Aker BP is always on the lookout for technology that can help create continuous and lasting improvements in our operations. The technology will force a cost reduction on the Norwegian shelf, and this is important for our value creation. We see a considerable potential in SCILS and our ambition is to use it in even more operations and from even more rigs in the future,” Rødsjø concludes.