The Norwegian authorities have approved Aker BP’s development and operation plan for the Hod field in the Norwegian part of the North Sea.
Aker BP submitted the PDO for the Hod project to the country’s Ministry of Petroleum and Energy in late June 2020. Hod will be among the first projects to be realized under the temporary changes to the Norwegian petroleum tax system.
The field will be developed using a normally unmanned
installation remotely controlled from the Valhall field centre, with low CO2
emissions because the platform will be powered from shore.
The approved PDO for the HOD development was personally handed over by the Minister of Petroleum and Energy Tina Bru, to the robot dog Spot, to catch up from their last meeting – in June, Spot was the one who submitted the PDO to the Minister.
Aker BP stated on Tuesday that the Hod development provides
activity and jobs for suppliers located in all parts of Norway. The company has
already awarded 100 contracts above NOK 1 million to suppliers in 23
municipalities in nine counties around the country.
Total investments for the development are estimated at
around $600 million and the total employment effect is estimated to 5,000 FTEs.
Recoverable reserves for Hod are estimated at around 40 million barrels of oil
Aker BP is the operator of the field with a 90 per cent
ownership interest and Pandion Energy is a partner with a 10 per cent interest.
Kvaerner has already been chosen to deliver the topside and
steel substructure for the unmanned wellhead platform at the field. The value
of the contract to Kvaerner is around $105.4 million.
The Hod field is located in Block 2/11 in the southern part
of the Norwegian sector of the North Sea, some twelve kilometres south of
Valhall and six kilometres south of the Valhall Flank South platform.
The original platform was the first unmanned platform on the
Norwegian continental shelf when it started production in 1990.
The original platform is no longer in service and will be
removed after the wells have been permanently plugged. Production start from
the new platform is planned for the first quarter of 2022.
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