Ærfugl

Ærfugl Oil and Gas Project Profile

Location and Geology

The Ærfugl project, formerly known as the Snadd field, is located in the Norwegian Sea, approximately 210 km west of Sandnessjøen and just west of Aker BP’s Skarv field. The reservoir is a 60-km long, 3-km wide gas condensate accumulation in a Cretaceous deep marine deposited reservoir with high net-to-gross ratios.

Discovery and Development

The Ærfugl reservoir was discovered in 2000. The project is being developed in two phases, both of which are tied into the existing production vessel (FPSO) on the Skarv field.

Production

• Production from Ærfugl phase 1 started on November 12, 2020, as promised in the Plan for Development and Operation (PDO) submitted to the Ministry of Petroleum and Energy three years earlier. The project was delivered on budget.
• The remaining wells for phase 2 came on stream in November 2021, significantly ahead of the original schedule of 2023 due to efficient alliances and strategic partnerships.

Reserves and Production Capacity

The Ærfugl field holds around 300 million barrels of producible oil equivalent. This will extend the lifetime of the Skarv field. The field produces both gas and oil, with the gas producers also being the largest oil producers at Skarv due to oil precipitation when the gas is produced up to atmospheric pressure.

Technology and Infrastructure

• Subsea Installations: The field consists of subsea installations, including six horizontal gas wells tied back to the Skarv FPSO.
• New Technologies: The project employs advanced technologies such as more efficient reservoir drainage through new vertical X-mas trees and long-distance, electrically heated flow lines to avoid hydrates in the gas pipelines. This technology improves heat efficiency and enables longer tie-backs.
• Digital Twin: A digital twin of the entire field has been created in collaboration with Cognite, which serves as a foundation for smarter operations and optimization of plans and operations. A new control room with a simulator supports the complex operations between the Skarv and Ærfugl fields.

Alliances and Partnerships

The development of the Ærfugl project is facilitated through several strategic alliances:

• Subsea Alliance: Between Aker BP, Subsea 7, and Aker Solutions.
• Semi-submersible Rigs Alliance: Between Aker BP, Odfjell Drilling, and Halliburton.
• Modification Alliance: Between Aker BP and Aker Solutions. These alliances have been crucial in delivering the project on cost and schedule, despite challenges such as the COVID-19 pandemic.

Environmental Impact

The Ærfugl project includes measures to reduce environmental impact:

• Emissions Reduction: The project is expected to reduce CO2 emissions per barrel produced from the Skarv FPSO by 30-40 percent.
• Energy Efficiency: The use of electrically heated flow lines and other efficient technologies contributes to overall energy efficiency and reduced discharges to the sea.

Economic and Local Impact

• Break-Even Price: The Ærfugl project has a break-even price of less than USD 15 per barrel, making it one of the most profitable developments on the Norwegian shelf.
• Local Suppliers: The project has brought significant economic benefits to local suppliers in the Helgeland region.

Ownership

The Ærfugl field is owned by Aker BP, along with other partners including BASF, Equinor, LetterOne Holdings, and Orlen.

In summary, the Ærfugl project is a major subsea development that leverages advanced technologies, strategic alliances, and efficient operations to maximize production while minimizing environmental impact. Its integration with the Skarv field ensures extended field life and significant economic benefits.