April 23, 2020

Operator Aker BP and partners report that production has started from the first Ærfugl phase 2 well in the Norwegian Sea – three years ahead of the original plan.
“The acceleration of production from Ærfugl Phase 2 means increased value creation for the Ærfugl joint venture, the supplier industry and the Norwegian society in the form of increased revenues. Thus I’m very pleased to mark this milestone. However the good news are offset by the fact that we are facing a global crisis that none of us have experienced before. Investments and explorations activities offshore Norway are put on hold. Tens of thousands of employees in our industry are currently at risk, “ says Kjetel Digre, SVP Operations & Asset Development in Aker BP.
As a respond to the dramatic change in the market situation, Aker BP has stopped all non-sanctioned projects, including the Hod redevelopment project in the Valhall area which was just about to be sanctioned prior to the dramatic turmoil.
“It is clear that the industry’s proposal for temporary adjustments in Norway’s tax regime to improve the industry’s cash flow in the short run – without reducing the total tax payments in the long run – will result in increased activity and new investment opportunities offshore Norway within the next 12 – 24 months,” adds Digre.
The Ærfugl field produces via Skarv FPSO approximately 210 km west of Sandnessjøen. It is one of the most profitable development projects on the Norwegian shelf with a break-even price of around USD 15 per barrel (converted from gas).
In early November 2019 operator Aker BP and partners Equinor, Wintershall DEA and PGNiG approved the final investment decision (DG3) for Ærfugl Phase 2, which led to today’s announcement. The remaining two phase 2 wells will come on stream in 2021.
(Source and image: AklerBP)