PDO for Kobra East & Gekko in Alvheim Area Submitted
Aker BP (operator) and licence partners ConocoPhillips Skandinavia AS and Lundin Energy Norway AS tody submitted a plan for development and operation (PDO) for Kobra East & Gekko (KEG) to the Ministry of Petroleum and Energy. The development will contribute to extend the lifetime of the Alvheim field, improve production and reduce unit costs.
Total investments in the project are projected at around NOK 8 billion (appr. USD 1 billion) and production is scheduled to start in the first quarter of 2024. Recoverable reserves in KEG are estimated at around 40 million barrels of oil equivalents (mmboe).
The development comprises the two discoveries Kobra East and Gekko in licence 203. The field will be developed with subsea installations connected to the production vessel on the Alvheim field (Alvheim FPSO), which is located in the Norwegian part of the central North Sea near the UK border.
It is expected that CO2 emissions per barrel will be cut in half and oil production from the Alvheim FPSO will double when KEG comes on stream. In addition, the KEG development will contribute to extend the lifetime of the Alvheim FPSO.
With a break-even price below USD 30 per barrel, the project will create significant value, both for the partners and for the Norwegian society at large. It will contribute to increased activity and employment in the supplier industry.
The KEG development will involve a real marathon under the seabed. The plan is to drill about 42 kilometres from a total of four multi-branch wells in the reservoir. Drilling costs make up a major part of the investments in the project. The drilling will take place from two drilling locations, Gekko South and Gekko North, and the subsea equipment on the seabed is designed with a view toward flexibility and the possibility of further developments in the future.
The development will be carried out in cooperation with Aker BP’s alliance partners. This is in line with Aker BP’s strategy for increased value creation through alliances and strategic partnerships.