Aker BP awards new contracts to enable Valhall to operate up to 2060
Norwegian oil and gas company Aker BP has awarded contracts to alliance partners for front-end engineering and design (FEED) valued at approximately NOK 440 million or about $49 million as part of its efforts to extend the life of the Valhall area located in the North Sea.
The contracts cover a new central platform on Valhall as well as a new platform and tie-in of the King Lear field. Aker BP entered the King Lear field in December 2018 following an acquisition of interest from Equinor. The joint development will contribute to an extended lifetime and increased value creation from Valhall, Aker BP explained on Monday.
The concept consists of a new process and wellhead platform (NCP), which has a bridge connection to the Valhall field centre and an unmanned platform on King Lear around 50 km from the field centre. The new infrastructure will be laid on the seabed to connect the two fields. A total of 19 wells are planned and the concept also includes considerable modification work on the Valhall field centre.
Aker BP SVP Operations & Asset Development, Ine Dolve, said: “This development will allow Aker BP to secure continued high production from the Valhall field centre and the flank platforms in the area after 2028. The development also provides access to resources from Valhall and King Lear. Aker BP is planning pre-investments for extra well space on both installations and secure flexibility to tie in of new discoveries as there is still additional upside potential in the area.”
Aker BP pointed out that the Valhall area is powered from shore resulting in close to zero emissions during normal operations and the plan is to also connect the new installations to the existing power from shore solution.
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Pandion Energy is Aker BP’s partner in the Valhall licence while Polish PGNiG is the partner in King Lear, which was discovered in 1988. The partnerships have decided to proceed with the selected concept for NCP and King Lear. Further maturing will now follow through the FEED phase, until a final investment decision and submission of a plan for development and operation is planned in late 2022.
Aker BP SVP Projects, Knut Sandvik, said: “Aker BP has a record-breaking investment programme going forward to 2028. NCP and King Lear will become one of the company’s largest development projects.”
The plan is to execute NCP and King Lear in the alliance model where Aker BP works together with strategic partners as one team with shared goals and incentives.
The first FEED contract was awarded to Aker Solutions as part of the Fixed Facilities Alliance for jacket and topsides for both NCP and King Lear. Furthermore, as part of this alliance, ABB was awarded a contract for electrical, instrument, control systems and telecom (EICT) for NCP and King Lear.
As part of Subsea Alliance, Aker Solutions was awarded a contract for umbilicals for King Lear and related subsea infrastructure while Subsea 7, as part of the same alliance, secured a contract for risers and pipelines.
Finally, as part of the Modification Alliance, Aker Solutions won a contract for modifications on the Valhall field centre.
In a separate statement on Monday, Aker Solutions stated that the FEED awards make it well-positioned for further contracts if the field developments move into the execution phase in 2022. The company estimates the combined scope to represent a very major contract, subject to final investment decision and regulatory approvals. The major contract is worth between NOK 5 billion and NOK 8 billion ($556-$890 million).
Aker BP said that the first production from the development is planned for 2027.
Valhall Asset Manager, Ole Johan Molvig, stated: “The ambition is to produce a total of two billion barrels from the Valhall area. A comprehensive modernisation of the area is underway, with the tie-in of new flank platforms, removal of old installations, and permanent plugging of wells. Together with NCP and King Lear, this will enable us to operate Valhall up to around 2060.”