Brage platform; Source: OKEA

North Sea operator sanctions oil & gas field development and hands out work to Aker Solutions, Subsea7, and OneSubsea

Norwegian oil and gas company OKEA has made a final investment decision (FID) to develop an oil and gas field in the North Sea off the coast of Norway, which will be tied back to an existing platform. With FID out of the way, the firm has hired Aker Solutions, Subsea7, and OneSubsea to bring this project to life. Additional contracts are expected to be awarded latest this year.  

Brage platform; Source: OKEA

OKEA inked a sale and purchase agreement (SPA) in December 2022 with DNO Norge to enter into the Brasse license (PL740) in the North Sea, taking over the previous partner’s equity free of charge and acquiring 50% interest in the license, with DNO holding the remaining 50%.

The acquisition was completed in August 2023, enabling the firm to take over the operatorship of the Brasse license. Currently, the PL740 partnership consists of OKEA (operator 39.2788%), DNO Norge (39.2788%), Lime Petroleum (17%), and M Vest Energy (4.4424%).

The partners in the license agreed on a fast-track development concept for the oil and gas discovery, paving the way for detailed design studies to link up with the OKEA-operated Brage field. The FID, anticipated in early 2024, has now been made for the Brasse development. This field is estimated to contain 24 million barrels of oil equivalent gross in recoverable reserves and will be developed as a tie-back to the Brage platform.

Located in the northern North Sea, 13 kilometers south of the Brage field, the Brasse development consists of a two-well subsea tie-back to the Brage platform, which will serve as the host facility for production, processing, and export. The company believes that standard solutions, well-proven technology, and close cooperation with strategic partners will ensure “an efficient and cost-effective development.”

Source: OKEA

According to OKEA, the Brasse development showcases its strategy to create additional value in areas close to existing infrastructure by identifying cost-effective solutions that enable the extraction of further volumes from the area. The plan for development and operation (PDO) will be submitted in April and Brasse will be renamed Bestla upon approval of the PDO. The name Bestla originates from Norse mythology and is the name of Odin’s mother.

Furthermore, the field, which is expected to come on stream during the first half of 2027, is anticipated to operate until 2031 with the potential for extension. The plateau production is estimated at around 26 kboepd gross and is expected within the first year of production. The Brage unit partnership consists of OKEA (operator 35.2%), Lime Petroleum (33.8434%), DNO Norge (14.2567%), Petrolia Noco (12.2575%), and M Vest Energy (4.4424%).

Knut Gjertsen, SVP Projects and Technology at OKEA, commented: “Brasse is an important addition to our portfolio and represents a significant value creation opportunity for OKEA and our partners. As a tie-back to Brage, both licences will benefit from synergies and economies of scale.”

New deals to enable development of Brasse

On a quest to develop the Brasse field, OKEA has picked Aker Solutions for the topside scope and Subsea7 and OneSubsea for the subsea scope, with contracts for rig and drilling services slated to be awarded in the second quarter of 2024.

Aker Solutions has confirmed the award of a sizeable contract for the Brasse tie-back project, which it defines as being between NOK 0.5 billion (almost $46.55 million) and NOK 1.5 billion (close to $139.64 million). The company’s project management team and key resources will be mainly based in Stavanger and pre-fabrication will be done at its yard in Egersund.

Moreover, the Norwegian player explains that the tie-back demands modifications on the Brage platform where the first production started in 1993. Aker Solutions has carried out the FEED for the project. The firm’s new scope of work is to execute engineering, procurement, construction, installation, and commissioning on Brage to prepare the platform’s topside for receiving oil and gas from the Brasse field.

Paal Eikeseth, Executive Vice President and Head of Aker Solutions’ Life Cycle segment, highlighted: “We are continuing to develop a long-term partnership with OKEA as a preferred supplier.

“Our experience of working as an integrator in projects alongside OKEA, OneSubsea and Subsea7 has shown that together, we are able to find feasible solutions to maximize the utilization of resources in mature areas in a profitable manner. The tieback will contribute to energy security in Europe.”