Aker BP To Invest $700Mn In Alvheim Subsea Tie-In

Aker BP To Invest $700Mn In Alvheim Subsea Tie-In
Aker BP has submitted a plan for development and operation for the Trell and Trine fields which entails an investment of $700 million.

Aker BP has submitted a plan for development and operation (PDO) for the Trell and Trine fields to Norway’s Ministry of Petroleum and Energy which entails an investment of $700 million.

This development will utilize the planned extended lifetime for the Alvheim field, increase production, and reduce both unit costs and CO2 per barrel. Aker BP’s partners in Trell and Trine are Petoro and Lotos E&P Norge.

"Trell and Trine is the third PDO submission in the Alvheim area in just one year, following close on the heels of the Frosk field, and the Kobra East and Gekko development. This is yet another confirmation of a success story on Alvheim that we and our partners can be proud of," says Aker BP CEO Karl Johnny Hersvik.

"From an operational perspective, the Alvheim area is one of the most cost-effective on the Norwegian shelf, and the resource base has expanded dramatically since the field came on stream. This is the result of targeted exploration and business development, technological innovation, and, not least, the level of cooperation with the suppliers," Hersvik adds.

Trell and Trine discoveries are located 15 miles east of the Alvheim FPSO. The development is planned with three wells and two new subsea manifolds to be tied back to existing infrastructure on East Kameleon and further on to the Alvheim FPSO.

One of the three wells is Trell Nord, which although not yet proven, has a high likelihood of discovery. When the Trell production well is drilled, the plan is to first prove hydrocarbons in Trell Nord, then drill the wells in Trell and Trine. The program will conclude with the production well in Trell Nord.

Total investments are estimated to be approximately $700 million, and production is scheduled to start in the first quarter of 2025.  Recoverable resources at the development are estimated to be around 25 million barrels of oil equivalent.

Subsea Contracts Already Signed

Aker Solutions was awarded a deal for the delivery of a subsea production system including three horizontal subsea trees, two manifolds, control systems, around 18.5 miles of subsea umbilicals as well as associated equipment and installation work. The work will start immediately with final deliveries scheduled for the first quarter of 2024.

Another deal was awarded to Subsea 7, and it covers engineering, procurement, construction, and installation (EPCI) of the pipelines, spools, protection covers, and tie-ins using key vessels from Subsea 7’s fleet. The production pipeline is of a pipe-in-pipe design.

Project management and engineering will begin immediately at Subsea 7’s offices in Stavanger, Norway. Fabrication of the pipelines will take place at Subsea 7’s spool base in Norway and offshore operations are expected to take place in 2023 and 2024.

Alvheim Heading Towards A Billion Barrels

The Alvheim field consists of the Kneler, Boa, Kameleon, and East Kameleon structures, subsequently joined by the Viper-Kobra structures and the Gekko discovery. The Alvheim area includes satellite fields Bøyla, Vilje, Volund, and Skogul. All these fields are produced via the Alvheim FPSO, which came on stream in June 2008.

When the Alvheim development was approved, the recoverable resources were estimated at just under 200 million barrels. Since then, close to 550 million barrels have been produced from the Alvheim area.

"The Alvheim area development is the story of an organization and partnership that have consistently sought out new opportunities in the surrounding area. They have tested and embraced new technology, always with a relentless focus on safe, stable, and cost-effective operations," says VP Operations & Asset Development – Alvheim Asset, Thomas Hoff-Hansen.

According to Hoff-Hansen, the Alvheim development has the ambition to develop and produce a billion barrels by 2040.

“When Trell and Trine are approved, the Alvheim area will surpass 750 million barrels either produced or sanctioned for development. Along with our partners, we see good opportunities for both connecting more discoveries to the established infrastructure in the area, as well as working to mature new exploration prospects," Hoff-Hansen says.

To contact the author, email bojan.lepic@rigzone.com

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