Aker BP is an oil and gas exploration and production (E&P) company. Its focus is to operate with lowest possible costs and emission per produced barrel.
Aker BP is a significant producer of oil and gas on the NCS and operator for the field centers on Valhall, Ula, Ivar Aasen, Alvheim and Skarv. In addition, Aker BP holds a 11.5733 % share of the Johan Sverdrup field.
Aker’s ownership agenda
Aker’s aim is to reinforce Aker BP as a key operator on the NCS, and we support the company’s ambitious targets for growth in its organic portfolio and through value-generating transactions. Aker BP’s strong operational performance and improvement programme for operational safety and efficiency are reducing both costs and CO2 emissions per produced barrel of oil. In our capacity as owner, Aker is encouraging Aker BP to operate with lowest possible cost and emissions.
Aker BP works to be a benchmark for safe, efficient, profitable and sustainable oil and gas operations. The company has defined CO2 reduction targets in accordance with the Paris agreement.
Øyvind Eriksen and Kjell Inge Røkke represent Aker on Aker BP’s board of directors.
The production start at Valhall Flank West is an important step towards achieving Aker BP’s ambition of another billion barrels from Valhall. During normal operations, there is zero CO2 production emissions. Since 2013, the Valhall field has been powered exclusively by power from shore via sub-sea cable transmission.
Aker BP considers the resource potential in the Ula area to be significant. The Oda field came on stream in 2019, which increased total production from the Ula area. The ambition is to further develop the Ula area and to extend the economic lifetime of the Ula hub.
In 2019, Ivar Aasen became the first manned platform on the Norwegian shelf to be operated from an onshore control room. As the year progressed, the rewards could be harvested in terms of improved collaboration between onshore and offshore, as well as increased production.
Alvheim has through several years had very good uptime and production results. Its development is based on the history of an organization and partners focusing on opportunities, implementing new technology while staying focused on delivering safe, reliable and cost-effective operations. The award of new licenses in the area increases growth opportunities.
Exploration success in the area in 2019 gave fresh perspectives on the geology around Skarv, generating new ideas on drilling prospects in the coming years. Several energy optimization projects resulted in reduced costs and lower CO2 emissions.
On 5 October 2019, the Johan Sverdrup field came on stream more than two months ahead of schedule and NOK 40 billion below budget. This giant oil field will be a major contributor to Aker BP’s production and earnings growth in the years to come.
Aker BP has good access to licences and operatorships on the NCS and is an active explorer. In recent years, about two thirds of the Aker BP’s exploration budget has been invested in the mature areas in the North Sea, where the infrastructure is good and the discovery rate still high.
Aker BP continues to be an operator with low carbon emission intensity. Its emissions are less than half the global industry average, and below the average for operators on the Norwegian continental shelf. From 2020 on, Aker BP’s goal is to deliver an emission intensity below 5 kg per barrel oil equivalent.
Development of the NOAKA area
Following the announced changes to the Norwegian petroleum tax system in June 2020, Aker BP and Equinor entered into an agreement in principle on commercial terms for a coordinated development of the licenses Krafla, Fulla and North of Alvheim (NOAKA) on the NCS and have started preparations for submitting Plans for Development and Operation (PDO) in 2022.
The development of the area will have significant effects on the Norwegian supply industry. Total investments are expected to be more than NOK 50 billion.