{"id":380593,"date":"2020-11-13T01:29:18","date_gmt":"2020-11-13T06:29:18","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=380593"},"modified":"2020-11-13T01:29:18","modified_gmt":"2020-11-13T06:29:18","slug":"aerfugl-phase-1-project-starts-production","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/aerfugl-phase-1-project-starts-production\/","title":{"rendered":"\u00c6rfugl phase 1 project starts production"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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TRONDHEIM, Norway<\/span>, Nov. 13, 2020<\/span> \/PRNewswire\/ —<\/p>\n

\n Operator Aker BP and partners Equinor, Wintershall Dea and PGNiG report that production has started from \u00c6rfugl phase 1 in the Norwegian Sea.<\/b>\n <\/p>\n

\n – I am very proud of the excellent performance shown by the Aker BP project team and our alliance partners to deliver this profitable project safely and efficiently on time and cost. This truly is One Team at its best,<\/i>\u00a0says CEO in Aker BP, Karl Johnny Hersvik.\u00a0<\/p>\n

\u00c6rfugl is one of the most profitable development projects on the Norwegian continental shelf. The initial estimated break-even oil price was USD 18.5<\/span> per barrel (converted from gas). Due to increased reserves, earlier production, stronger dollar and accelerated tax depreciation, the break-even price has\u00a0improved to below USD 15<\/span> per barrel.<\/p>\n

\n – Aker BP’s goal is to produce oil and gas as efficiently as possible to return greater value from our oil and gas resources to investors and the society. The successful start-up of production from \u00c6rfugl phase 1 demonstrates our ability to deliver on this strategy,<\/i>\u00a0Hersvik adds.<\/p>\n

\n 300 million barrels<\/b>\n <\/p>\n

The \u00c6rfugl development is a major subsea project in two phases. Both phases are tied into the existing production vessel (FPSO) on the Skarv field, which is located approx. 210 km west of Sandnessj\u00f8en.<\/p>\n

The Plan for Development and Operation (PDO) for \u00c6rfugl was approved by the Ministry of Petroleum and Energy in April 2018<\/span>.<\/p>\n

The reservoir holds a total of around 300 million barrels of producible oil equivalents.\u00a0<\/p>\n

Total investment costs for the \u00c6rfugl project (phase 1 and 2) are around NOK 8 billion<\/span>.<\/p>\n

\n Improvements<\/b>\n <\/p>\n

Reorganizing the value chain through strategic partnerships and alliances is an important part of Aker BP’s strategy.<\/p>\n

\n -The subsea alliance, semi alliance and modification alliance have all been vital in this project. The alliances have not only been delivering on cost and schedule, despite Covid-19 related challenges; they have as well achieved major improvements since the PDO was approved, including significantly accelerated development of phase 2 and better economics, <\/i>says SVP Projects, Knut Sandvik<\/span>.<\/p>\n

Development of \u00c6rfugl is enabled in particular by two new technologies:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/p>\n