Norwegian oil and gas company Aker BP has filed its development plan for the Kobra East and Gekko (KEG) project located in the central part of the North Sea off Norway.
Aker BP is the operator of the project with ConocoPhillips and Lundin Energy as partners. The project will help extend the life of the Alvheim field, increase its production, and reduce costs.
Karl Johnny Hersvik , CEO of Aker BP, noted that, operationally, Alvheim is among the most cost-effective fields in Norway and that the KEG project represents a new chapter in the project’s history.
The total investment for the project will amount to NOK 8 billion or about $933 million. The production is expected to start in the first quarter of 2024. Recoverable reserves are estimated at around 40 million barrels of oil equivalent.
The project development includes the Kobra East and Gekko discoveries, located in production licence 203 . It will be developed through subsea installations connected to the Alvheim FPSO.
It is expected that CO2 emissions per barrel will be halved and oil production from the Alvheim FPSO will double when KEG enters production. In addition, KEG will contribute to extending the life of the Alvheim FPSO.
A total of four wells are planned to be drilled with drilling costs making up a significant proportion of total investments in the project. The drilling will take place from two drilling locations, Gekko Sør and Gekko Nord, and the equipment on the seabed has been designed with flexibility and the possibility of further developments in mind.
In a separate statement on Wednesday, Norway’s Ministry of Petroleum and Energy said that State Secretary, Tony C. Tiller , received the development plan from Elena Michelle Erstad Dale who is an apprentice and works at Alvheim FPSO for Aker BP. The ministry also said that the project lifetime is expected to be around nine years.
The Norwegian government also on Wednesday received a development plan from Equinor for the Lavrans discovery and the Kristin Q-discovery, which is a part of the Kristin field.