Norwegian oil & gas duo comes on stream ahead of schedule

When submitting the plan for development and operation (PDO) for KEG to the Norwegian Ministry of Petroleum and Energy in June 2021, the target was the start-up of production in the first quarter of 2024.

In addition to starting production earlier than estimated, the project has been delivered under the original budget of NOK 8 billion (approximately $711.5 million).

KEG, operated by Aker BP with ConocoPhillips Skandinavia as partner, is located in the Alvheim area in the central part of the North Sea, ten kilometers west of Heimdal and close to the UK sector border.

The development comprises the two discoveries Kobra East and Gekko in license 203. The field has been developed with subsea installations connected to the production vessel on the Alvheim field (Alvheim FPSO).

According to Aker BP, recoverable reserves in KEG PDO are estimated at around 40 million barrels of oil equivalents (mmboe), and with KEG in production, CO2 emissions per barrel will be significantly reduced and oil production from the Alvheim FPSO substantially increased.

“The KEG project execution is a fantastic example of what we can achieve with the alliance model, working as one team with our suppliers towards a common goal and with shared incentives,” said Aker BP CEO, Karl Johnny Hersvik.

“The successful start-up of production from KEG also represents a new chapter in Alvheim’s proud history of being among the most cost-efficient oil and gas producers on the Norwegian shelf with a resource base that has multiplied since start-up.”

Since the start-up of production from Alvheim in 2008, nearly 600 million barrels of oil equivalent have been produced from the area.

Aker BP said that the KEG development had involved a real marathon under the seabed, as about 42 kilometers from a total of four multi-branch wells in the reservoir have been drilled. Drilling costs are said to make up a major part of the investments in the project.

“The KEG project adds important volumes to the existing production capacity at Alvheim FPSO and will enable extended lifetime up to 2040. The ongoing Tyrving project, which is estimated to come on stream in 2025, will add further production to the FPSO,” said Alvheim Director, Ine Dolve.

“The partnership also sees great opportunities for adding further discoveries to the existing infrastructure in the area.”

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