Aker BP has started production from Kobra East & Gekko (KEG) in the Alvheim area of the North Sea, earlier than the initial target of the first quarter of 2024, as outlined in the plan for development and operation (PDO) submitted to Norway’s Ministry of Petroleum and Energy in 2021.
In addition to starting up the production from KEG several months earlier than estimated, Aker BP said in a news release Thursday that the project has been delivered under the original budget of $710 million (NOK 8 billion).
The KEG development comprises the two discoveries Kobra East and Gekko in license 203, according to the release. The field has been developed with subsea installations connected to the production vessel on the Alvheim field, the Alvheim floating, production, storage, and offloading (FPSO) vessel, which is in the Norwegian part of the central North Sea near the border of the United Kingdom (UK). KEG is operated by Aker BP, with ConocoPhillips Skandinavia AS as a partner.
Aker BP said recoverable reserves in KEG PDO are estimated at around 40 million barrels of oil equivalent (MMboe). Since the start-up of production from Alvheim in 2008, nearly 600 MMboe have been produced from the area, the company noted. With KEG in production, carbon dioxide emissions per barrel will be significantly reduced and oil production from the Alvheim FPSO substantially increased, the company added.
“The KEG project execution is a fantastic example of what we can achieve with the alliance model, working as one team with our suppliers towards a common goal and with shared incentives”, Aker BP CEO Karl Johnny Hersvik said. “The successful start-up of production from KEG also represents a new chapter in Alvheim’s proud history of being among the most cost-efficient oil and gas producers on the Norwegian shelf with a resource base that has multiplied since start-up”.
“This has really been a one-team project where alliance partners and strategic suppliers have delivered safely and efficiently and with a continuous search for improvements”, KEG Project Manager Ronny Asbo said.
Aker BP noted that 26.1 miles (42 kilometers) have been drilled from a total of four multi-branch wells in the reservoir have been drilled, adding that drilling costs make up a major part of the investments in the project.
“The drilling performance at KEG has been world-class”, Asbo commented. “This has contributed significantly to the [safe] and successful ‘below budget and ahead of schedule’ deliveries. There have as well been very good deliveries from the other delivery lines in the project”.
“The KEG project adds important volumes to the existing production capacity at Alvheim FPSO and will enable extended lifetime up to 2040”, Alvheim Director Ine Dolve said. “The ongoing Tyrving project, which is estimated to come on stream in 2025, will add further production to the FPSO. The partnership also sees great opportunities for adding further discoveries to the existing infrastructure in the area”.
3D Seismic Completed for Poseidon CCS
Meanwhile, Aker BP and OMV (Norge) AS have completed the acquisition of a 3D seismic survey over the Poseidon CCS license area, or license EXL005, in the Norwegian North Sea, located approximately 62.1 miles (100 kilometers) off the Norwegian coast. The seismic survey was safely executed within schedule and budget, Aker BP said in an earlier news release.
The seismic acquisition campaign, carried out by PGS with the vessel Ramform Atlas and covering more than 193 square miles (500 square kilometers), aimed to generate high-resolution imaging of the carbon dioxide storage complex and to provide a baseline for monitoring of the storage integrity, Aker BP said.
The Poseidon project encompasses the Leman gas fields, one of the largest geological structures in the Southern North Sea sector of the UK Continental Shelf. In March, Aker and BP OMV were awarded the Poseidon license, which has a work program that includes a 3D seismic acquisition and related studies, followed by a drill-or-drop decision by May 2025 at the latest, according to the release. Poseidon is a 50/50 partnership between the two companies and operated by Aker BP.
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