The
Skarv Area

Exploration success in the area in 2019 gave fresh perspectives on the geology around Skarv, generating new ideas on drilling prospects in the coming years. Several energy optimization projects resulted in reduced costs and lower CO2 emissions.

FROM DECLINE TOWARDS INCREASED PRODUCTION

The ambition for the Skarv area is to significantly increase the estimated production up until 2045.

The Ørn exploration well was drilled by operator Equinor in the third quarter of the year, with the exploration team from Aker BP as an active contributor. The well resulted in one of the largest gas discoveries on the Norwegian continental shelf this year. Just weeks later, the Shrek well was drilled by operator PGNiG and came in with volumes twice as high as the estimates.

It has been a fantastic year for Skarv with high uptime and two new discoveries. We have made good progress in maturing projects and reducing the operational CO2 footprint. At the same time, production efficiency has been record-high. With our license partners, we have developed a solid strategic foundation to bring Skarv into the future.

Ine Dolve
VP Operations and Asset
Development Skarv

TAKE-OFF FOR ÆRFUGL

Drilling of the first production well on Ærfugl Phase 1 marked the start of an active period for the asset. This was the first new production well on Skarv in six years. Three more produc-tion wells will be drilled during 2020. The increased produc-tion from Ærfugl will turn the curve from decline to increase towards plateau production.

In November, the Ærfugl partners decided to proceed with Phase 2 of the project, three years ahead of the original plan. The Ærfugl field is one of the most profitable development projects on the Norwegian shelf with a break-even price of around USD 15 per barrel.

In parallel with development of Ærfugl Phase 1, work has been proceeding to increase gas processing capacity on Skarv. Modification of the plant will contribute to an in-creased capacity of more than 15 percent.

Reorganizing the value chain through strategic partnerships and alliances is an important part of Aker BP’s strategy. The alliances in subsea, modifications and drilling and wells con-tributes to the Ærfugl project.

Production 2019

22.3
m b o e p d (net)

Production Efficiency

96 %
Production start: 2012

SUCCESSFUL ENERGY EFFICIENCY PROJECTS

Aker BP has set ambitious goals to reduce both operating costs and CO2 emissions from Skarv by 30 percent compared with 2018 levels.

Throughout 2019, the onshore and offshore teams have been working on various energy efficiency initiatives. Reducing the export pressure and optimizing the power configuration on Skarv has made it possible to reduce annual CO2 emissions by 22,000 tonnes and cost by NOK 19 million.

MATURING GRÅSEL

During 2019, Aker BP has worked intensively to develop the Gråsel discovery into a robust and profitable project. The Gråsel discovery was made in 1998. In this project we plan to re-use existing infrastructure in order to minimize development scope. This has been an enabler for a highly competitive project with a low break-even. Aker BP plans to start the development of Gråsel in 2020.

Highlights from 2019

  • 1 March

    Installation of new electric motor for gas injection compressor on Skarv FPSO

  • May

    License partners decide to proceed with concept devel-opment of the Gråsel project

  • August

    Drilling of Vågår exploration well

  • September

    Installation of subsea structures and production equipment on Ærfugl

  • September

    Gas discovery on Ørn exploration well by operator Equinor, north of Skarv. Aker BP holds 30 percent of the license

  • October

    Drilling of first production well on Ærfugl

  • October

    Oil discovery on Shrek exploration well by operator PGNiG. Aker BP owns 30 percent of the license

  • 11 November

    Decision to proceed with execution of phase 2 of the Ærfugl project