The Norwegian Ministry of Petroleum and Energy on Thursday approved Aker BP's plan for development and operation (PDO) for Kobra East & Gekko (KEG) project in the Alvheim area, offshore Norway.
Aker BP as the operator, and its license partners ConocoPhillips and Lundin Energy filed the PDOto the Ministry in June 2021.
The KEG development will contribute to extend the lifetime of the Alvheim field, improve production and reduce unit costs.
Total investments in the project are projected at around NOK 8 billion (~$1 billion) and production is scheduled to start in the first quarter of 2024. Recoverable reserves in KEG are now estimated at around 50 million barrels of oil equivalents (mmboe), Aker BP said.
The development comprises the two discoveries Kobra East and Gekko in licence 203. The field will be developed with subsea installations connected to the Alvheim FPSO on the Alvheim field. The Alvheim field is located in the Norwegian part of the central North Sea near the UK border.
"It is expected that CO2 emissions per barrel will be cut in half and oil production from the Alvheim FPSO will double when KEG comes on stream," Aker BP said.
Earlier on Thursday, Aker BP said it intended to drill more exploration wells in 2022, after reporting a record operating profit for the final quarter of 2021 boosted by higher oil and gas prices.
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