Aker BP hands in Hod development plans
Norwegian oil and gas company Aker BP has submitted the plan for development and operation (PDO) for the Hod project off Norway to the country’s Ministry of Petroleum and Energy.
The Hod field will be developed in collaboration with Aker BP’s alliance partners with a normally unmanned installation remotely controlled from the Valhall field centre, with very low CO2 emissions due to power from shore.
It is important to note that Hod is among the first projects to be realized under the recently introduced temporary changes to the Norwegian petroleum tax system.
Total investments for the development are estimated at around $600 million and the total employment effect is estimated to 5000 FTEs.
Production start is planned for the first quarter of 2022.
Recoverable reserves for Hod are estimated at around 40 million barrels of oil equivalents.
Aker BP is the operator of the field with a 90 per cent ownership interest and Pandion Energy is a partner with a 10 per cent interest.
Aker BP CEO, Karl Johnny Hersvik, said: “With projects like Hod, we are creating significant value both for our owners and for the society at large, while we contribute to maintaining the capabilities of Norway’s world-class supply industry”.
Cost-reductions through alliance model
Hod will be developed in collaboration with Aker BP’s alliance partners.
“The Alliance Model delivers significant cost reductions and is an efficient execution model. This is key to developing the Hod field, which is expected to contribute with 40 million barrels of oil equivalents from the Valhall area”, said Hersvik.
Aker BP has already awarded Kvaerner a contract for delivering the topside and steel substructure for the unmanned wellhead platform at the Hod field.
The value of the contract to Kvaerner is around NOK 1 billion ($105.4 million).
The Hod field is located in Block 2/11 in the southern part of the Norwegian sector of the North Sea, some twelve kilometres south of Valhall and six kilometres south of the Valhall Flank South platform.
The field will be developed with a normally unmanned installation remotely controlled from the Valhall field centre.
Five wells with sidetracks will be drilled in order to increase recovery.
Power from shore
Hod will receive power from shore via Valhall field centre.
“During normal operations, this means virtually zero local CO2 emissions. This is in line with Aker BP’s strategy to minimize the footprint of our operations”, said SVP Operations & Asset Development Kjetel Digre.
Hod will be delivered with an electric lifeboat, which is monitored from the Valhall field centre.
Both the crane and seawater pump are electric and receive power from shore via the Valhall field centre.
All of this contributes to a reduced need for maintenance, according to Aker BP.
The original Hod platform was the first unmanned platform on the Norwegian continental shelf when it started production in 1990.
The original platform is no longer in service and will be removed after the wells have been permanently plugged.
First oil from the new Hod platform – which will be named Hod B – is planned for the first quarter 2022.