Aker BP brings online North Sea project less than two years after first steel
Norwegian operator Aker BP and its partner Pandion Energy have started production from the Hod B in the southern North Sea offshore Norway.
The first steel for Hod B was cut in Aker Solutions’ yard in Verdal, the day after the Norwegian Parliament adopted temporary changes in the petroleum tax regime in June 2020. Now, less than two years later, the production has started, Aker BP informed on Monday.
Karl Johnny Hersvik, CEO of Aker BP, said: “Production start-up from Hod B less than two years after, is great news! It demonstrates how the temporary tax changes, matured in the spring of 2020 when the industry was paralyzed by a pandemic and a sharp fall in oil prices, has had a real impact. Aker BP and Pandion Energy responded immediately to the politicians’ expectation of creating activity for the supplier industry across the country.”
In line with the rapid sanctioning of Hod B, the project has been delivered through a demanding period: 14 months after the first steel was cut in Verdal, the platform was installed offshore – in accordance with the plan.
As a reminder, Kvaerner, now Aker Solutions, secured a contract to deliver the topside and steel substructure for the platform in June 2020. The jacket was installed in July 2021 and the topside in August of the same year, just one year and two months after the first steel cut.
Hersvik added: “There are many who can celebrate the start of profitable production with almost zero CO2 emissions from the Hod field. Through projects like Hod B, we are creating value both for the company, partners, alliance partners, owners and the Norwegian society at large. We are also contributing to sustain a world-leading supplier industry in Norway.”
According to Aker BP, in the period leading up to production start-up, Subsea 7 has conducted several subsea campaigns in the Hod project, such as the installation and connection of the gas lift pipelines, production flowlines and umbilicals. The Maersk Invincible jack-up rig has drilled six production wells, and modification work has been carried out at the Valhall field centre.
A total of five alliances have contributed to the Hod project. The alliances have been integrated from start to finish in the project and by doing this, Aker BP has taken the alliance model to a new level.
Hod B is a normally unmanned wellhead platform, remotely operated from the Valhall field centre. Production from the Hod field will have close to zero CO2 emissions thanks to power from shore.
Aker BP and partner Pandion Energy expect Hod to produce 40 million barrels of oil.
“Hod is an important contribution towards achieving the Valhall ambition of producing a total of two billion barrels from the area,” said Valhall Asset Manager, Ole Johan Molvig.