Aker BP

Regulatory Filings • Dec 13, 2021

Aker BP awards contracts worth 440 million kroner

Aker BP awards contracts worth 440 million kroner

Aker BP has awarded contracts to alliance partners for front-end engineering and

design (FEED) valued at approximately 440 million kroner. The contracts cover a

new central platform on Valhall, as well as a new platform and tie-in of the

King Lear field. The joint development will contribute to extended lifetime and

increased value creation from Valhall.

"This is an important milestone in the further development of the Valhall area.

Through this development, Aker BP can maximise value creation from an existing

field. Moreover, it will contribute to significant value creation for Aker BP,

its partners, owners and the Norwegian society," says SVP Operations & Asset

Development Ine Dolve.

Low emissions through power from shore

The concept consists of a new process and wellhead platform (NCP) which has a

bridge connection to the Valhall field centre, and an unmanned platform on King

Lear around 50 km from the field centre. New infrastructure will be laid on the

seabed to connect the two fields. A total of 19 wells are planned, and the

concept also includes considerable modification work on the Valhall field

centre.

"This development will allow Aker BP to secure continued high production from

the Valhall field centre and the flank platforms in the area after 2028. The

development also provides access to resources from Valhall and King Lear. Aker

BP is planning pre-investments for extra well space on both installations and

secure flexibility to tie in of new discoveries as there is still additional

upside potential in the area," says Dolve.

The Valhall area is powered from shore resulting in close to zero emissions

during normal operations. The plan is to connect the new installations to the

existing power from shore solution.

An alliance project

Pandion Energy is Aker BP's partner in the Valhall licence. PGNiG is the partner

in King Lear, which was discovered in 1988. The partnerships have decided to

proceed with the selected concept for NCP and King Lear. Further maturing will

now follow through the FEED phase, until a final investment decision and

submission of plan for development and operation is planned in late 2022.

"Aker BP has a record-breaking investment programme going forward to 2028. NCP

and King Lear will become one of the company's largest development projects. A

large part of the contracts is expected to be awarded Norwegian suppliers. We

are talking about significant investments and the development will provide

ripple effects throughout the entire country. This will contribute to further

development of the Norwegian supplier industry, and secure work at the yards as

we move into the energy transition," says SVP Projects Knut Sandvik.

The plan is to execute NCP and King Lear in the alliance model where Aker BP

works together with strategic partners as one team with shared goals and

incentives.

The FEED contracts

· Aker Solutions as part of the "Fixed Facilities Alliance": Topsides and

jacket for both NCP and King Lear

· ABB as part of the "Fixed Facilities Alliance": Electrical, instrument,

control systems and telecom (EICT) for NCP and King Lear

· Aker Solutions as part of the "Subsea Alliance": Umbilicals for King Lear

and related subsea infrastructure

· Subsea7 as part of the "Subsea Alliance": Risers and pipelines

· Aker Solutions as part of the "Modification Alliance": Modifications on the

Valhall field centre

Longer lifetime for a giant

First production from the development is planned in 2027.

"The ambition is to produce a total of two billion barrels from the Valhall

area. A comprehensive modernisation of the area is under way, with the tie-in of

new flank platforms, removal of old installations and permanent plugging of

wells. Together with NCP and King Lear, this will enable us to operate Valhall

up to around 2060," concludes Valhall Asset Manager Ole Johan Molvig.

Contact:

Ole-Johan Faret, Press Spokesperson, tel.: +47 402 24 217

About Aker BP:

Aker BP is an independent 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

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