Month: December 2017

Acquisition of 10 percent interest in Valhall and Hod completed

Posted on by Oksana Hillervik

Reference is made to the press release dated 4. December 2017 regarding Pandion Energy entering into an agreement with Aker BP ASA (Aker BP) to acquire a 10 percent interest in the Valhall area, including licences PL006B, PL033 and PL033B.

All closing conditions have been fulfilled, and the closing of the transaction took place on 22 December 2017.

Valhall is one of the largest oil fields in the southern part of the Norwegian sector in the North Sea. Together with Hod field over one billion barrels of oil equivalent has been produced. Aker BP, the operator of Valhall field, has stated an ambition to produce at least an additional 500 million barrels of oil equivalent. Earlier this month, Aker BP announced submittal of Plan for Development and Operation (PDO) for Valhall Flank West.

The Valhall Flank West project aims to continue the development of the Tor formation in Valhall on the western flank of the field, with startup of operation in fourth quarter 2019. Recoverable reserves for Valhall Flank West are estimated to be around 60 million barrels of oil equivalent.

For more information on Valhall, please see: https://www.akerbp.com/en/our-assets/production/valhall/

Aker BP announces submittal of Plan for Development and Operation (PDO) for Valhall Flank West

Posted on by Oksana Hillervik

Aker BP ASA, the operator of the Valhall and Hod fields, has submitted the plan for development and operation (PDO) for Valhall Flank West to the Norwegian Ministry of Petroleum and Energy, on behalf of the Valhall joint venture.

As announced on December 4th 2017, Pandion Energy AS has entered into an agreement with Aker BP ASA to acquire a 10 percent interest in the Valhall area. The transaction is subject to customary conditions for completion, including approval by the Ministry of Oil and Energy, Ministry of Finance and relevant competition clearance. The effective date of the transaction will be 1 January 2017, and closing is expected by the end of 2017.

Valhall is one of the largest oil fields in the southern part of the Norwegian sector in the North Sea. The Valhall Flank West project aims to continue the development of the Tor formation in Valhall on the western flank of the field, with startup of operation in fourth quarter 2019.

Valhall Flank West. Illustration: Aker BP

Valhall Flank West will be developed from a new Normally Unmanned Installation (NUI), tied back to the Valhall field centre for processing and export.

  • First oil in fourth quarter 2019
  • Targeting the Tor formation in the Valhall West Flank
  • Drainage by natural depletion, with option for future water injection
  • Six producers with option to convert two producers into water injectors
  • Normally Unmanned Installation (12 well slots) with helideck access

The wellhead platform at Valhall Flank West will be fully electrified, and will be designed to minimize the need for maintenance activities. The platform will be remotely operated from the Valhall field centre.

Recoverable reserves for Valhall Flank West are estimated to be around 60 million barrels of oil equivalent. Total investments for the development are estimated to NOK 5.5 billion in real terms.

For more information on Valhall, please see: https://www.akerbp.com/en/our-assets/production/valhall/

Pandion Energy to partner with Aker BP on Valhall

Posted on by Oksana Hillervik

Pandion Energy AS (Pandion Energy) has entered into an agreement with Aker BP ASA (Aker BP) to acquire a 10 percent interest in the Valhall area, including licences PL006B, PL033 and PL033B.

Since production commencement in 1982, the Valhall field continues to be one of the largest oil fields in the southern Norwegian North Sea. Together with Hod field over one billion barrels of oil equivalent has been produced, more than three times the initial expected volume. Following commissioning of a new combined production and hotel platform in 2013, the field is currently producing ca. 37.5 kboepd* and is expected to continue to produce for several decades. Aker BP, the operator of Valhall field, has stated an ambition to produce at least an additional 500 million barrels of oil equivalent.

Jan Christian Ellefsen, Pandion Energy’s CEO, commented:

We are pleased and proud to be chosen by Aker BP to partner on such a high quality asset. By acquiring a 10 percent interest in Valhall, Pandion Energy gains exposure to a material production base with significant value-creation potential through near-term growth projects and substantial resource upside from field redevelopment, appraisal and exploration opportunities.

This is an important milestone in the growth of Pandion Energy, which was established in November last year. The company also holds a 20 percent interest in the Cara development project, one of the largest discoveries on the Norwegian Continental Shelf in 2016, where ENGIE E&P is the operator.

The transaction is subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.

For more information on Valhall, please see: https://www.akerbp.com/en/our-assets/production/valhall/

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*Average gross production rate for first 9 months in 2017