OKEA ASA announces FID for Brasse development to target 24mboe of oil

OKEA ASA (OSE: OKEA), in a strategic collaboration with its partners, has officially announced the final investment decision (FID) for the Brasse development, marking a significant milestone in North Sea oil exploration. Located just 13 kilometers south of the Brage field, the Brasse development is poised to be a key player in the energy sector, with an estimated 24 million barrels of oil equivalent (boe) in recoverable reserves. This initiative represents a critical step towards sustainable development and efficient energy extraction in the region.

The Brasse development, identified under license PL740, will be developed as a tie-back to the Brage field, signifying a unique synergy between the two sites. This strategic approach allows for an efficient and cost-effective development process, utilizing standard solutions and well-proven technology in close cooperation with strategic partners. Knut Gjertsen, SVP Projects and Technology at OKEA, emphasized the importance of this development, stating, “Brasse is an important addition to our portfolio and represents a significant value creation opportunity for OKEA and our partners.”

In terms of operational plans, the development will encompass a two-well subsea tie-back to the Brage platform, which will act as the host facility for production, processing, and export. This methodology underscores OKEA’s commitment to creating value in areas adjacent to existing infrastructure, leveraging cost-effective solutions to tap into further volumes from the area.

The expected timeline for the Brasse field, soon to be renamed Bestla following the approval of the Plan for Development and Operation (PDO), forecasts production commencement in the first half of 2027, with a projected operational period until 2031 and the potential for extension. The plateau production is estimated at around 10 thousand barrels of oil equivalent per day (kboepd) for OKEA’s share, amounting to 26 kboepd gross, anticipated within the first year of production.

OKEA has further solidified its commitment to the Brasse development through significant contracts awarded to Aker Solutions for the topside scope and to Subsea7 and OneSubsea for the subsea scope. Additional contracts for rig and drilling services are set to be awarded in the second quarter of 2024.

Reflecting on the partnerships, the PL740 partnership comprises OKEA ASA, DNO Norge AS, Lime Petroleum AS, and M Vest Energy AS, with a notable alignment with the Brage Unit’s partnership structure. This strategic alignment is expected to harness synergies and foster economies of scale, enhancing the operational efficiency and economic viability of the Brasse development.

The Brasse development by OKEA ASA represents a forward-looking investment in the North Sea‘s oil exploration sector, demonstrating an innovative approach to leveraging existing infrastructure and technology for sustainable energy extraction. This development is not only a testament to OKEA’s strategic vision and operational excellence but also underscores the potential for continued innovation and value creation in the oil and gas industry, setting a precedent for future developments in the region.