Green light for Aker BP to kick off production from North Sea field

Norwegian oil and gas player Aker BP has received consent to start production from a field in the North Sea, which will be tied back to an existing platform off the coast of Norway.

According to the Norwegian Offshore Directorate, this consent is for the start-up of production from the Hanz accumulation. The development solution involves reusing the subsea installations on the Jette field, which was shut down in 2016. Located in the central part of the North Sea, the Hanz oil and gas field lies 12 kilometers north of the Ivar Aasen field in a water depth of 115 meters.

While the field was discovered in 1997, the plan for development and operation (PDO) was approved in 2013. This field will be developed with subsea templates tied back to the Ivar Aasen platform about twelve kilometers further south. The Ivar Aasen field is located on Utsira High in the northern part of the North Sea, around 175 km west of Karmøy.

Tomas Mørch, Assistant Director of Licence Management at the Norwegian Offshore Directorate, commented: “A development of Hanz utilising existing infrastructure and an alternative method for pressure support contributes to good utilisation of resources.”

The first oil from Ivar Aasen was produced in December 2016. This field receives power from shore, thereby minimizing CO2 emissions. On the other hand, the Hanz field lies in production license 028 B, which was awarded on December 15, 1999, and is valid until December 31, 2036. Aker BP is the operator of the license with Equinor and Sval Energi as its partners. 

The final investment decision (FID) for the project was taken in December 2021. At the time, total investments were estimated at NOK 3.3 billion (nearly $313.7 million). With total reserves of around 20 million barrels of oil equivalent (mmboe), the start-up of production from the Hanz field is expected in the first quarter of 2024.

According to the operator, the estimated investment costs for developing Hanz have now risen to NOK 4.2 billion (almost $399.2 million). Aker BP’s estimate of recoverable resources, mainly oil, is 3.1 million standard cubic meters of oil equivalent.