Aker BP, Equinor put Krafla operatorship transfer plans in motion

Aker BP and Equinor signed a memorandum of understanding (MoU) for transfer of Krafla operatorship from Equinor to Aker BP, making Aker BP operator of all discoveries in the Norwegian continental shelf (NCS) NOAKA area—Krafla, Fulla, and North of Alvheim.

Equinor is presently the operator of Krafla in the north and Aker BP is the operator of NOA Fulla in the south. The companies believe one operator is the best solution for further development of the area, Equinor said in a May 5 release.

“The best solution for the future is that Aker BP takes over the operatorship for project execution and operation of Krafla, based on the concept developed by Equinor,” said Geir Tungesvik, executive vice-president for projects, drilling and procurement, Equinor.

The license owners will apply to the ministry for change of operator. A transfer of operatorship will be carried out when the investment decision has been approved by the license and the plan for development and operation (PDO) has been submitted to authorities.

Equinor will retain its 50% interest in Krafla and 40% in the Fulla license. The companies will jointly submit PDOs for NOA Fulla and Krafla, as planned, by yearend.

NOAKA

The NOAKA area is between Oseberg and Alvheim in the North Sea. Distribution of shares in the area is Krafla (Equinor 50%, Aker BP 50%), Fulla Aker BP (47.7%, Equinor 40%, LOTOS Exploration and Production 12.3%), and NOA (Aker BP 87.7%, LOTOS 12.3%).

Total recoverable resources in the area are estimated at 600 MMboe. The partners plan to drill about 45 wells to reach resource potential. Preliminary calculation of planned investments is $10 billion.

The concept covers a production, drilling, and living quarter platform on NOA that periodically will have little or no staff. Frøy field is being redeveloped with a normally unmanned wellhead platform to be tied back to NOA. An unmanned production platform on Krafla will be tied back to NOA for processing of oil and produced water.

The concept also covers an extensive development on the seabed, including a total of nine subsea templates in the area. Plans call for an area development with power supply from shore. Production start is scheduled for 2027.