one of the most profitable development projects on the Norwegian continental shelf. The initial estimated break-even oil price was USD 18.5 per barrel (converted from gas). Due to increased reserves, earlier production, stronger dollar and accelerated tax depreciation, the break-even price has improved to below USD 15 per barrel. Aker BP’s goal is to produce oil and gas as efficiently as possible to return greater value from our oil and gas resources to investors and the society. The successful start-up of production from AErfugl phase 1 demonstrates our ability to deliver on this strategy, Hersvik adds.
The AErfugl development is a major subsea project in two phases. Both phases are tied into the existing production vessel on the Skarv field, which is located approx. 210 km west of Sandnessjoen.
The Plan for Development and Operation for AErfugl was approved by the Ministry of Petroleum and Energy in April 2018.
The reservoir holds a total of around 300 million barrels of producible oil equivalents.
Total investment costs for the Ærfugl project (phase 1 and 2) are around NOK 8 billion.