Norwegian oil and gas company Aker BP is set to expand its footprint in the North Sea and Norwegian Sea by obtaining stakes in two hydrocarbon discoveries, betting on tie-back potential around existing infrastructure on and near the Norwegian Continental Shelf (NCS).
The company has entered into two separate deals that strengthen its positions close to existing infrastructure on the Norwegian Continental Shelf by agreeing to acquire an interest in the Losgann/Froskelår discovery near the Alvheim area in the North Sea and obtain operatorship and a majority interest in the Slagugle area, close to the Skarv field in the Norwegian Sea.
Aker BP has signed an agreement with Apache to purchase its operated interest in the UK portion of the Losgann discovery, which together with the Froskelår discovery on the Norwegian Continental Shelf forms a single cross-border accumulation located on the UK–Norway median line.
While the discovery has remained undeveloped to date, the Norwegian player expects to establish operatorship, subject to obtaining the customary necessary consents on both sides of the accumulation, creating a stronger basis for progressing the project towards development and maximising value creation from the discovered resource.
As the Losgann/Froskelår discovery is considered a potential tie-back opportunity to the Alvheim area, the transaction supports the firm’s strategy of creating value through infrastructure-led development and profitable growth around existing hubs.
Karl Johnny Hersvik, CEO of Aker BP, commented: “Losgann and Froskelår are two names for the same discovery. By bringing ownership, operatorship and development responsibility together, we improve the prospects of moving the project towards development and creating value from resources located close to existing infrastructure.”
In addition, Aker BP has inked an agreement with ConocoPhillips Skandinavia, a subsidiary of the U.S.-headquartered energy giant ConocoPhillips, to buy operatorship and a 51% working interest in the Slagugle area in the Norwegian Sea. Upon completion, ConocoPhillips will retain a 29% non-operated interest, while Inpex Idemitsu Norge holds the remaining 20%.
The acquisition marks the company’s return to the license after seven years. ConocoPhillips and its partners have carried out valuable work to mature the area and build a solid foundation for possible development.
The Slagugle area, which comprises licences PL891, PL891B, and PL891C, including the main Slagugle oil discovery, is located around 20 kilometers north of the Heidrun field and approximately 270 kilometres north of Kristiansund.
The first license in the area was awarded in the APA licensing round in 2016. Three wells that entail one discovery well and two appraisal wells have been drilled in the area between 2020 and 2025, together proving around 50 million barrels gross of recoverable oil from the main Slagugle structure.
A subsea development concept has been partially matured, and the agreement includes preliminary plans for additional exploration to increase the resource base ahead of a potential development. Both transactions are subject to approval by the relevant authorities and other customary completion conditions.
Aker BP’s CEO highlighted: “The Slagugle area is located close to our Skarv field, and we see attractive potential to add resources through further exploration in the licence.
“ConocoPhillips and its partners have done solid work maturing the area, and by assuming operatorship we can align activity with existing infrastructure and work to establish a competitive basis for a possible development around one of our established hubs.”
The latest set of acquisition moves comes less than three months after Aker BP and Equinor decided to establish a strategic alliance to boost future production and value creation across selected parts of their oil and gas portfolios on the NCS.
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