Yggdrasil

Yggdrasil Oil Project Profile

Location and Geology

The Yggdrasil oil project is located in the Central North Sea on the Norwegian Continental Shelf (NCS), approximately 160 km west of Kollsnes, near Bergen. The area spans about 60 km from north to south and includes water depths ranging from 110m to 120m. It encompasses several oil and gas fields, including Hugin, Fulla, Munin, Frøy, Frigg Gamma Delta, Langfjellet, Lille-Frigg, and Rind fields, situated between the Alvheim and Oseberg fields.

Project Overview

Yggdrasil, formerly known as North of Alvheim Krafla Askja (NOAKA), is one of Norway’s most extensive and ambitious offshore oil development projects. The project involves the development of multiple fields across three license groups: Hugin, Munin, and Fulla. Aker BP is the operator, with Equinor and PGNiG Upstream Norway (formerly LOTOS) as partners.

Development Plan and Infrastructure

• Platforms and Wells: The project includes the installation of three offshore platforms: Munin (an unmanned production platform), Hugin A (a production, drilling, and quarters platform), and Hugin B (a normally unmanned wellhead platform). The Munin platform will be connected with 23 wells, while Hugin A will serve as an area hub, receiving oil production from Munin and Hugin B. The Fulla and Lille-Frigg fields will be developed as subsea tiebacks to Hugin A.
• Subsea Production System: The subsea production system will comprise 40 vertical subsea trees, nine six-slot manifolds, wellheads, and associated tie-in systems. Eight static umbilicals with a total length of 90 km will also be installed.
• Power Supply: The project will receive power from the shore through a 250 km, 145 kV sea cable connected to Norway’s national grid in Samnanger. A new transformer station will be built at Børdalen in Samnanger, along with a compensation station at Årskog in Fitjar and 11 km of powerline and cable in Samnanger.

Production and Export

• Production Start: Production is expected to commence in 2027.
• Export: Oil will be exported through a shared pipeline from Hugin A to the Grane oil pipeline, connecting to the Sture oil terminal at Øygarden. Gas will be exported via Munin to Statpipe and the Karsto processing plant located north of Stavanger.

Remote Operations and Digitalization

The Yggdrasil project is designed with a strong emphasis on remote operations, digitalization, and minimal carbon footprint. The entire area will be remotely operated from an integrated operations centre and control room in Stavanger. The platforms are planned to be periodically unmanned or fully unmanned, utilizing advanced technological solutions to drive efficiency, lower operating costs, and reduce greenhouse gas emissions.

Investment and Economic Impact

• Investment: The project involves an estimated investment of NOK 115 billion (approximately $11.6 billion).
• Economic Impact: The project is expected to generate significant economic activity in Norway, contributing to around 65,000 full-time equivalents during its lifetime, with approximately half of this during the development phase. It will also involve activity at various yards and suppliers across Norway and globally.

Contractors and Partnerships

• Aker Solutions: Awarded front-end engineering and design (FEED) contracts for the subsea production systems and fixed facilities, including the Hugin A and Hugin B platforms.
• Subsea 7: Part of the Subsea Alliance with Aker BP and Aker Solutions for the subsea production systems.
• Siemens Energy: Part of the Fixed Facilities Alliance with Aker BP and Aker Solutions.
• Hitachi Energy: Contracted to provide an onshore energy system and electrical equipment for the grid connection.
• Allseas: Contracted for transportation and installation services for the Hugin A platform using the Pioneering Spirit vessel.
• Palfinger Marine Norway: Contracted to provide remotely controlled cranes for the project.

Regulatory Approvals

• Final Investment Decision: Made in December 2022.
• Plan for Development and Operation (PDO): Approved by the Norwegian Ministry of Petroleum and Energy in June 2023.

Environmental Considerations

The project is designed to minimize greenhouse gas emissions through the use of power from the shore, which is expected to significantly reduce the project's carbon footprint.

Reserves and Discoveries

The Yggdrasil area is estimated to contain gross recoverable resources of around 650-700 million barrels of oil equivalents. Notable discoveries include the Øst-Frigg Beta/Epsilon well, which is the longest exploration well drilled on the Norwegian Continental Shelf, estimated to hold up to 90 million barrels of oil equivalent.