Krafla oil and gas field : Aker BP, Equinor to move ahead with $4.6bn project

Norwegian state-owned multinational energy company Equinor along with Aker BP will invest approximately NOK 46 billion ($4.65 billion) to develop and operate the Krafla oil and gas field in the North Sea, which was proven in 2011.

To this effect, the companies have submitted a plan for development and operation (PDO) of the Krafla oil and gas project to the Norwegian Minister of Petroleum and Energy.

Being developed along with the Fulla and North of Alvheim discoveries in the same area, the Krafla field is said to have an estimated recoverable volume of 325 million barrels of oil.

Aker BP will develop the Krafla oil and discovery to produce through an unmanned platform, which will be remotely operated from shore.

The installation will feature five seabed templates tied back to a production, drilling and living quarters platform on North of Alvheim to process oil and treat produced water.

The unmanned Krafla platform without a helicopter deck will be operated and controlled from Aker BP’s control room in Stavanger.

Trond Bokn — Equinor project development senior vice president, commenting on the Krafla oil and gas field development, said: “Krafla is yet another example of how we are redefining what can be achieved on the Norwegian continental shelf.

“Krafla will be developed utilising extensive technological innovation and high levels of digitalisation, automation and remote operation, thus setting a new standard for future offshore developments.

“With an entirely new operating model, the technologically innovative design will improve safety, cut operating costs and result in close to zero CO2 emissions from production.”

The Krafla development project with power from shore is projected to produce an estimated 0.4 kg of CO2 emissions per barrel of oil and commence production in 2027.

Krafla, Fulla, and North of Alvheim (NOA) collectively make up the NOAKA area, which will be called Yggdrasil, while the partnerships are planning to change the names of NOA and Krafla to Hugin and Munin, respectively.

In June, Equinor and Aker BP agreed to transfer operatorship for the development phase and further operation of the Krafla oil and gas field to the latter.

The NOAKA area with an overall resource estimate of around 650 million barrels of oil equivalent, will need a total estimated investment of NOK 115 billion ($11.6 billion).