This is the largest addition to our Norwegian project pipeline in five years. It is a complex development with 15 stranded oil and gas discoveries and five different partners (Statoil, Aker BP, Grupa Lotos, Total and Wellesley Petroleum). But cooperation between companies is key. The diverse types of companies involved makes NOAKA even more interesting – Majors, a Norwegian independent, an integrated company and Private Equity. Already there have been disagreements on the development concept, with Aker BP and Statoil at odds on their preference for a manned or unmanned processing facility.
Option 1 – manned central processing and quarters platform – is proven technology which is, in turn, better understood but there will be a higher initial cost (preferred by one operator – Aker BP).
Option 2 – two unmanned processing platforms – is newer technology that has not been utilised before in Norway. It has lower upfront capex, but will have higher ongoing operating costs (preferred by the other operator – Statoil).
First production expected in 2023
Concept select was originally expected to be made in Q1 2018, followed by a final investment decision (FID) in early 2019. However since the development concept has not yet been agreed, we assume the project has been delayed by a year with first production expected in 2023.
If the project gets sanctioned, it would be one of the top five biggest developments in the North Sea to reach FID this decade.