Norwegian oil companies Equinor and Aker BP have agreed for the Krafla offshore field operator to be transferred from Equinor to Aker BP. With this transaction Aker BP will be the operator of all discoveries in the NOAKA area - Krafla, Fulla, and North of Alvheim - in the North Sea, offshore Norway.
"Equinor and Aker BP are operators of one field development project each in the area and have agreed that one operator will be the best solution for further development of the area," Equinor said.
Equinor is currently the operator of Krafla in the north and Aker BP is the operator of NOA Fulla in the south. The NOAKA area, which will require a $10 billion investment to develop, is located between Oseberg and Alvheim in the North Sea.
"One operator will have a good basis for efficient project execution and for safe and efficient operation of the fields, creating stronger synergies between the two developments and fewer interfaces," Equinor said.
“The current agreement is the result of an excellent collaboration during the past years, built on mutual trust and a common ambition of achieving lasting improvements and efficient operation on the Norwegian continental shelf (NCS). The best solution for the future is that Aker BP takes over the operatorship for project execution and operation of Krafla, based on the concept developed by Equinor,” says Geir Tungesvik, Equinor’s executive vice president for Projects, Drilling & Procurement.
A transfer of operatorship will be carried out when the investment decision has been approved by the licence, and the plan for development and operation (PDO) has been submitted to the authorities.
Equinor will still be a major licence partner in the area and will retain its existing share of 50 percent in Krafla and 40 percent in the Fulla licence.
The companies will jointly submit the PDOs for NOA Fulla and Krafla as planned by the end of the year, Equinor said.
"With investments in the order of $10 billion the area development is one of the next big NCS developments. A high percentage of the contracts will be awarded to Norwegian suppliers, creating strong ripple effects throughout the country," Equinor said.
600 million barrels
Total recoverable resources in the NOAKA area are estimated at around 600 million barrels of oil equivalent.
The development concept covers a production, drilling, and living quarter platform on NOA that periodically will have little or no staff. An unmanned production platform on Krafla will be tied back to NOA for processing of oil and produced water.
The concept also covers an extensive development on the seabed, including a total of nine subsea templates in the area. Plans call for an area development with power supply from shore. Production start is scheduled for 2027.
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