Aker BP announces start-up of production from the Frosk field development in Alvheim

(Moderate)

(Very Positive)

Rhea-AI Summary

Aker BP announces the successful completion of the Frosk field development in the Alvheim area, with production commencing on schedule and within budget after 18 months. The project, totaling an investment of approximately NOK 2 billion (USD 230 million), is expected to yield recoverable reserves of around 10 million barrels of oil equivalents. Aker BP emphasizes its innovative alliance model, which facilitated cooperation with suppliers and enhanced operational efficiency. The Frosk field is connected to the Alvheim FPSO, utilizing existing infrastructure with minimal environmental impact. Future projects Kobra East, Gekko, and Tyrving are also planned.

Positive

Production from the Frosk field has started on schedule and within budget.
Total investment for the project is around NOK 2 billion (USD 230 million).
Frosk is expected to recover approximately 10 million barrels of oil equivalents.
The project exemplifies Aker BP’s effective alliance model, enhancing cooperation and efficiency.

Negative

None.

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03/14/2023 - 04:11 AM

FORNEBU, Norway, March 14, 2023 /PRNewswire/ -- Aker BP is pleased to announce that the Frosk field development in the Alvheim area has been successfully completed and production has started on schedule and within budget, only 18 months after the Plan for Development and Operation (PDO) was submitted. Frosk is operated by Aker BP, with Vår Energi as partner.

"The Frosk project has been delivered with high quality, on time and within budget by Aker BP's project team in close cooperation with our suppliers. This is a great example of what we can achieve with the alliance model, working as one team with our suppliers towards a common goal with shared incentives. Frosk is also an excellent illustration of how we can increase the value of our existing fields through higher production and lifetime extensions as well as reduced unit costs and emissions intensity," says CEO in Aker BP, Karl Johnny Hersvik.

The Frosk field is tied back to Alvheim FPSO in the North Sea via existing subsea infrastructure and utilises existing capacity in the processing facilities with only a marginal increase in power consumption and CO2 emissions.

The Frosk project has been delivered within the initial investment estimate of around NOK 2 billion (appr. USD 230 million). Recoverable reserves in Frosk are estimated at around 10 million barrels of oil equivalents (mmboe).

The Alvheim area is among the most efficient assets on the Norwegian continental shelf, and the resource base has multiplied since start-up. This is the result of targeted exploration and reservoir development, technological innovation and not least the unique collaboration with key suppliers under Aker BP's alliance model.

Through the alliance model, Alvheim benefits from continuity on rigs, vessels, facilities and personnel. This is a key success factor which allows for transfer of learnings and continuous improvement in methods and technology from one project to the next.

Frosk is the first of three new subsea tie-back projects to the Alvheim FPSO, with Kobra East & Gekko planned to come on stream early 2024 and Tyrving expected on stream in 2025.

Contacts:
Ole-Johan Faret, Press Spokesperson, tel.: +47 402 24 217
Kjetil Bakken, Head of Investor Relations, tel.: +47 918 89 889

The following files are available for download:

https://mb.cision.com/Main/1629/3732507/1909849.pdf	Release
https://news.cision.com/aker-bp-asa/i/frosk-pud-press-release,c3154592	Frosk PUD press release

View original content:https://www.prnewswire.com/news-releases/aker-bp-announces-start-up-of-production-from-the-frosk-field-development-in-alvheim-301771226.html

SOURCE Aker BP ASA

FAQ

What is the Frosk field development by Aker BP?

The Frosk field development is a project by Aker BP in the Alvheim area that has successfully commenced production after 18 months, with an investment of around NOK 2 billion.

When did Aker BP start production at the Frosk field?

Production at the Frosk field started on March 14, 2023.

What are the expected recoverable reserves from the Frosk field?

The Frosk field is estimated to have recoverable reserves of approximately 10 million barrels of oil equivalents.

What is the investment cost for the Frosk field project?

The total investment for the Frosk field development is approximately NOK 2 billion (USD 230 million).

What is Aker BP's alliance model?

Aker BP's alliance model focuses on collaboration with suppliers to enhance project efficiency and achieve common goals.

What future projects are planned after Frosk?

Aker BP plans to bring Kobra East and Gekko on stream in early 2024, followed by Tyrving in 2025.