A PDO plan for the project has been submitted to the Norwegian authorities

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Aker BP to develop KEG project in North Sea. (Credit: Keri Jackson from Pixabay.)

Aker BP and partners are set to invest around NOK8bn (around $935m) for the development of two discoveries at Kobra East and Gekko (KEG) in Alvheim area of the North Sea.

Together with partners ConocoPhillips and Lundin Energy, the company has submitted a development and operation (PDO) plan for the KEG project to the Norway’s Ministry of Petroleum and Energy.

KEG is estimated to contain recoverable reserves of around 40 million barrels of oil equivalents (mmboe).

The planned development would facilitate extension of the Alvheim field lifetime, along with enhancing production and reducing unit costs, said Aker BP.

The Alvheim field comprises the Kneler, Boa, Kameleon and East Kameleon structures, as well as the Viper-Kobra structures and Gekko discoveries.

Aker BP CEO Karl Johnny Hersvik said: “Alvheim is a success story that both we and our partners can be proud of. The field is among the most cost-efficient on the Norwegian shelf, and the resource base has multiplied since start-up.

“This is the result of targeted exploration and business development, technological innovation and, not least, exceptionally good cooperation with the suppliers. The KEG project represents a new chapter of this proud history.”

Aker BP intends to develop the field with subsea installations connected to Alvheim FPSO, the production vessel on the Alvheim field, which is located in the Norwegian part of the central North Sea.

The Alvheim FPSO commenced operations in June 2008.

The KEG development will involve drilling of about 42km from a total of four multi-branch wells in the reservoir. The drilling is planned to be conducted from two drilling locations, Gekko South and Gekko North.

Production from the project is planned to commence in the first quarter of 2024.

Alvheim operations and asset development VP Thomas Hoff-Hansen said: “The KEG project adds important volumes to the existing production capacity at Alvheim FPSO and will enable extended lifetime up to 2040.

“The partnership also sees great opportunities for adding further discoveries to the existing infrastructure in the area.”

In a separate development, Equinor, Petoro, Eni and TotalEnergies have announced plans to invest NOK6.5bn ($753m) to develop Lavrans and the Kristin Q discoveries in the Norwegian Sea.