Aker BP

Regulatory Filings • Dec 15, 2017

Submitting Plan for Development and Operations (PDO) for Ærfugl

Submitting Plan for Development and Operations (PDO) for Ærfugl

Aker BP ASA (Aker BP) has, on behalf of the joint venture partners, submitted

the Plan for Development and Operations (PDO) for Ærfugl to the Norwegian

Ministry of Petroleum and Energy (MPE).

The Ærfugl field, including Snadd Outer, is a unique gas condensate field,

nearly 60 km long and just 2-3 km wide, situated close to the Aker BP-operated

Skarv FPSO, approximately 210 km west of Sandnessjøen.

The PDO covers the full-field development and includes the resources in both the

Ærfugl and Snadd Outer fields which are planned to be developed in two phases.

The first phase includes three new production wells in the southern part of the

field tied into the Skarv FPSO via a trace heated pipe-in-pipe flowline, in

addition to the existing A-1 H well. Production is planned to begin in late

The second phase is subject to further maturation, but the reference case

includes two additional wells in the northern part of the field and one in Snadd

Outer also tied into the Skarv FPSO with an estimated production start late

2023. Other alternatives will be looked at to select the optimized concept.

Highly attractive and robust development

The total remaining reserves for the full-field development are estimated at

approximately 275 million barrels of oil equivalents.

Total investments in the Ærfugl project are estimated at NOK 8.5 billion (real

terms) with NOK 4.5 billion in the first phase and NOK 4.0 billion in the second

phase (reference case) respectively.

The Ærfugl development represents a significant opportunity with highly

attractive and robust economics. In addition, the Ærfugl development will extend

the economic field life of the Skarv FPSO and allow for increased recovery from

the Skarv field itself.

SURF and SPS contracts awarded

On 11th December, Aker BP, on behalf of the Ærfugl partners, entered into Ærfugl

field development contracts with Subsea 7 for Subsea Umbilical Riser Flowline

(SURF) and with Aker Solutions for Subsea Production System (SPS).

The contracts' cover Phase 1 of the project with an option for the Phase 2

scope.

The Ærfugl partnership awarded the contracts to Subsea 7 and Aker Solutions

based on the implementation of new technology and safe, cost-effective

solutions. The Ærfugl project will be organized and executed as a part of Aker

BP's alliance model.

Both contracts were awarded following the approval by the MPE for making early

project commitment, and subject to the final approval of the PDO.

Joint Venture partners in Ærfugl (Skarv Unit) are Aker BP ASA (operator,

23.835%), Statoil Petroleum AS (36.165%), DEA Norge AS (28.0825%) and PGNiG

Upstream Norway AS (11.9175%). Partners in Snadd Outer (PL 212 E) are Aker BP

ASA (operator, 30%), Statoil Petroleum AS (30%), DEA Norge AS (25%) and PGNiG

Upstream Norway AS (15%).

PS: In November 2017, the Ministry of Petroleum and Energy approved a new name

for Ærfugl (formerly Snadd).

Contacts:

Investor contact: Jonas Gamre, VP Investor Relations, tel.: +47 971 18 292

Media contact: Ole-Johan Faret, Press Spokesman, tel.: +47 402 24 217

About Aker BP:

Aker BP is a fully-fledged E&P company with exploration, development and

production activities on the Norwegian Continental Shelf. Aker BP is the

operator of Alvheim, Ivar Aasen, Skarv, Valhall, Hod, Ula and Tambar. The

company is also a partner in the Johan Sverdrup field. Aker BP is headquartered

at Fornebu, Norway, and is listed on the Oslo Stock Exchange under the ticker

'AKERBP'. More about Aker BP at www.akerbp.com.

This information is subject to disclosure requirements pursuant to section 5-12

of the Norwegian Securities Trading Act.