Yggdrasil, which holds total recoverable resources of more than 700mmboe, calls for an investment of $10.4bn, while Valhall PWP – Fenris involves an investment of $5bn to install a new process and wellhead platform bridge to the Valhall field centre and an unmanned wellhead platform on the Fenris field
Storting approves major North Sea oil projects of Aker BP. (Credit: Aker BP)
Aker BP has secured approval for its plans for development and operation of the Yggdrasil area and Fenris and the further development of Valhall on the Norwegian continental shelf (NCS) from Norway’s Parliament, Storting.
In late March 2023, the Norwegian government submitted Proposition 97 S, which includes the development of Yggdrasil and Valhall process and wellhead platform (PWP)-Fenris, to the Storting.
Last month, a majority of the Standing Committee on Energy and the Environment gave a positive recommendation for the projects. This was taken into consideration by the Storting in a plenary session.
The final approval for the development plans will be given by the Norwegian Ministry of Petroleum and Energy issues, said Aker BP.
Aker BP CEO Karl Johnny Hersvik said: “With this decision, the Storting has said yes to thousands of jobs and great value creation in Norway.
“I am proud of what we will deliver together with our licence partners. Yggdrasil and Valhall PWP-Fenris alone constitute more than NOK 165 billion in investments. We are talking estimated tax revenue of more than NOK 120 billion for our nation.”
Earlier this year, Aker BP said that it will move ahead with nine out of the ten previously announced field development projects on the NCS, which entail an investment of over NOK200bn ($18.1bn). Plans for the Troldhaugen project were dropped by the company.
The development projects to be taken up by Aker BP and its partners are grouped into four main regions, which are Yggdrasil, Valhall PWP – Fenris, Skarv, and Utsira High.
Yggdrasil is made up of the Hugin, Fulla, and Munin licence groups in the North Sea. It contains multiple discoveries with total recoverable resources of more than 700 million barrels of oil equivalent (mmboe) and calls for an investment of NOK115bn ($10.4bn).
Valhall PWP – Fenris, also located in the North Sea, involves an investment of NOK50bn ($5.07bn). The project will involve connecting a new process and wellhead platform bridge to the Valhall field centre and an unmanned wellhead platform on the Fenris field.
According to Aker BP, the Norwegian share of deliveries in Yggdrasil and Valhall PWP – Fenris is around 65%. The projects are expected to create 130,000 full-time equivalents in Norway through the lifetimes of the fields.