Aker BP To Increase Oil & Gas Production In Skarv Area in Norway

The start-up of Grasel satellite oil and gas field is the latest project in a series of satellite projects intended to greatly boost the production of light crude, gas and natural gas liquids in the Skarv area.

Aker BP To Increase Oil & Gas Production In Skarv Area in Norway

On 18th April 2021, Norwegian company Aker BP said in a statement that it has started up the Grasel satellite oil and gas field in Skarv area. The start-up of Grasel satellite oil and gas field is the latest project in a series of satellite projects intended to greatly boost the production of light crude, gas and natural gas liquids in the Skarv area.

The company further revealed that they have brought Grasel well forward, six months after the final investment, to start production, and benefitting greatly from the ready availability of the rig. The crude from the Skarv area is loaded directly onto the tankers and the gas is sent to the Karsto terminal via the Asgard Transport System. Aker BP put great emphasis on its ambitions for Skarv area with a series of satellite oil and gas plants already in operation or under development in the area.

Skarv area started production of oil and gas in 2013 with production amounting around 14,000 b/d of crude, 12,000 b/d of natural gas liquids, and 3.2 Bcm of gas in 2020. Grasel, one of the projects either planned or under development in the area, has a capacity of 13 million barrels and would provide a major boost to the production of Skarv area according to Aker BP’s statement.

Apart from Grasel, Aker BP is also developing Aerfugl, an oil and gas project with much greater reserves than the original Skarv field. Total reserves of Aerfugl are estimated to be at around 300 million boe. According to the Norwegian Petroleum Directorate, Aerfugl came on stream in April 2020 and crude output reached 16,000 b/d in April 2021, with further wells lined up to come on stream.

Aker BP's vice president for Skarv Area Development And Operations, Sverre Isak Bjorn said, “We're maturing several development projects with the objective of making investment decisions by the end of 2022. The ambition is to phase in production from these developments over the next four-to-five years. As of today, the Shrek, Idun Nord, Alve Nord and Orn discoveries are included in our 'Skarv Satellite project.”

Aker BP, a company listed in Oslo with BP and engineering giant Aker as its largest shareholders, is the operator for the Skarv area with a stake of nearly 24%. State-controlled giant Equinor and Germany's Wintershall Dea both hold stakes of 36.2% and 28% respectively, while Poland's PGNiG holds a stake of just under 12%.