Norwegian oil and gas company Aker BP has filed a plan for development and operation (PDO) for Kobra East & Gekko (KEG) offshore development in the North Sea, offshore Norway.
Total investments in the project are projected at around NOK 8 billion (appr. USD 1 billion) and production is scheduled to start in the first quarter of 2024. Recoverable reserves in KEG are estimated at around 40 million barrels of oil equivalents (mmboe).
The project, which includes two discoveries Kobra East and Gekko in licence 203, developed with subsea installations connected to the Alvheim FPSO vessel, located in the Norwegian part of the central North Sea near the UK border.
The development will contribute to extend the lifetime of the Alvheim field, improve productivity and reduce unit costs, Aker BP said.
"Alvheim is a success story that both we and our partners can be proud of. The field is among the most cost-efficient on the Norwegian shelf, and the resource base has multiplied since start-up. This is the result of targeted exploration and business development, technological innovation and, not least, exceptionally good cooperation with the suppliers. The KEG project represents a new chapter of this proud history,” says Aker BP CEO, Karl Johnny Hersvik.
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. In addition, the KEG development will contribute to extending the lifetime of the Alvheim FPSO, the Norwegian company said.
"With a break-even price below USD 30 per barrel, the project will create significant value, both for the partners and for the Norwegian society at large. It will contribute to increased activity and employment in the supplier industry," Aker BPsaid.
"The KEG project is a good example of how the temporary changes to the Norwegian petroleum tax system, approved in June last year, is stimulating activity on the Norwegian shelf,” says Hersvik.
The KEG development plan includes drilling about 42 kilometers from a total of four multi-branch wells in the reservoir. Drilling costs make up a major part of the investments in the project, Aker BP said.
The drilling will take place from two drilling locations, Gekko South and Gekko North, and the subsea equipment on the seabed is designed with a view toward flexibility and the possibility of further developments in the future.
The Alvheim field consists of the Kneler, Boa, Kameleon and East Kameleon structures, as well as the Viper-Kobra structures and Gekko discoveries. The Alvheim area includes satellite fields Bøyla, Vilje, Volund, and Skogul. All these fields are produced via the Alvheim FPSO, which came on stream on 8 June 2008.
"The KEG project adds important volumes to the existing production capacity at Alvheim FPSO and will enable extended lifetime up to 2040. The partnership also sees great opportunities for adding further discoveries to the existing infrastructure in the area,” says Alvheim VP Operations & Asset Development, Thomas Hoff-Hansen.