Norwegian oil and gas company Aker BP is in the final stages of its multi-billion dollar Valhall PWP-Fenris project, designed to extend hydrocarbon production at its Valhall field in the southern Norwegian North Sea for another four decades.
The Valhall field, a cornerstone of Norway’s offshore production since its discovery in 1975 and first oil in 1982, has a history of continuous innovation. Despite early challenges with its unique chalk reservoir and seabed subsidence, persistent investment and technological advancements have already enabled it to produce over a billion barrels of oil equivalent, three times its original recovery estimate. This latest PWP-Fenris project builds on that legacy, aiming to push the field’s operational life well into the mid-21st century.
Key Project Milestones
The project has achieved several significant milestones recently:
- Valhall PWP Steel Jacket Installation: The 9,500-ton steel jacket for the new production and wellhead platform (PWP), built by Aker Solutions, was successfully installed. This critical operation involved the powerful vessels Pioneering Spirit from Allseas and Sleipnir from Heerema Marine Contractors, following the removal of the old processing and compression platform (PCP) jacket.
- Bridge Installation: A 100-meter, 1,000-tonne bridge from Nymo was delivered and installed, connecting the new PWP platform to the Valhall field center. Aker BP emphasises that this bridge is a testament to Norwegian industrial capability, having generated approximately 150,000 man-years and involved over 250 Norwegian suppliers across its projects. This installation, carried out by Heerema Marine Contractors, marks the completion of this year’s offshore campaign for the PWP-Fenris project and is crucial for securing long-term production at Valhall.
- Utility Module Relocation: On July 1, the utility module for the Valhall PWP platform was moved from Worley Rosenberg’s hall in Stavanger. This module, which will eventually weigh around 4,800 tonnes and stand 55 meters tall, houses essential support systems vital for safe and stable offshore operations, including power supply, HVAC, and water systems. This achievement highlights the strong collaboration between Aker BP, Aker Solutions, and Worley, operating as a “OneTeam.”
Project Scope and Impact
The Valhall PWP-Fenris project, which also includes the development of the Fenris field, received approval in June 2023 and began construction in September 2023. With total investments estimated at $6.6 billion, it involves drilling 19 wells and will significantly extend the Valhall field’s operational life.
Beyond extending oil production, the Fenris tie-back will significantly increase Valhall’s gas processing capacity and boost gas exports to Europe through the existing Norpipe pipeline. This strategically positions Valhall as a crucial “southern gas hub,” contributing to Norway’s long-term capacity for stable energy deliveries to Europe.
Aker BP is committed to low-emission production, and this project aligns with that goal by leveraging the existing power-from-shore system, resulting in emissions of less than 1 kg CO2 per barrel of oil equivalent. This pioneering power-from-shore initiative was first implemented at Valhall in 2013. Pandion Energy is Aker BP’s partner on the Valhall field, and PGNiG Upstream Norway on Fenris.
The “Alliance Model” Driving Success
The successful execution of these complex operations is largely attributed to Aker BP’s “alliance model,” a collaborative framework that integrates key suppliers like Aker Solutions, Worley, ABB, and Siemens Energy from the early engineering stages through to execution. This “OneTeam” approach fosters shared incentives, driving efficiency, cost reduction, and rapid implementation of innovative solutions. This model has previously demonstrated its effectiveness, for instance, by significantly reducing the time and cost of well plugging campaigns at Valhall.
Broader Development and Economic Impact
Aker BP is also actively developing other major projects, including Yggdrasil. Construction on Yggdrasil began in September 2023, with an estimated cost of over $10.3 billion. This project encompasses the Hugin, Fulla, and Munin license groups and involves partners Equinor and PGNiG Upstream Norway. The 22,000-tonne Hugin A jacket has already been loaded for installation, with Aker Solutions’ Verdal yard delivering a portfolio of four jackets and two topsides for Aker BP.
These major investments, totaling over $17 billion for Valhall PWP-Fenris and Yggdrasil combined, underline Aker BP’s long-term commitment to the Norwegian Continental Shelf. The projects not only secure thousands of jobs and substantial value creation in Norway, with an estimated 65% Norwegian content for Valhall PWP-Fenris and Yggdrasil alone, generating activity across shipyards in Stord, Verdal, Egersund, Sandnessjøen, Haugesund, and Stavanger, and hundreds of suppliers nationwide. They also demonstrate how established fields can be revitalised to provide low-cost, low-emission energy, ensuring a stable energy supply for Europe while the industry gradually transitions towards a renewable future. Aker BP’s ultimate vision is to produce two billion barrels from the Valhall area over its lifespan, with operations potentially continuing until 2050 or even 2060. As new facilities come online, older structures at Valhall are also being systematically decommissioned and recycled, with facilities like Aker Solutions’ Stord yard achieving near 100% recycling rates for the recovered materials.
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