Norway upstream project NOAKA – a blueprint for the future
The NOAKA (North of Alvheim Krafla Askja) project could be a game changer for the North Sea. The largest addition to our Norwegian project pipeline in five years, NOAKA is located south of Oseberg in the Northern North Sea. Operators Statoil and Aker BP, and partner Grupa Lotos have joined together to evaluate a combined project for certain fields - the Statoil-operated Askja/Krafla and Aker-BP-operated North of Alvheim areas. A redevelopment of the Statoil-operated Frigg field and the Total-operated Rind discovery are also expected to form part of the development.
With around 500 stranded discoveries in Norway and the UK, could this be a blueprint for new developments across the North Sea?
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.
We expect oil to be exported with a new build 60 kilometre long pipeline to Oseberg before moving through the Oseberg Transport System to the Sture terminal. While wet gas is expected to use a new build 60 kilometre long pipeline to Statpipe and onwards to the Kårstø gas processing plant. The development is expected to be powered from shore.
With access to the full NOAKA asset report, you'll find more detail about:
- Key issues with the development concept, operatorship, commercial negotiations and reserves
- Maps of the areas and fields with colour-coding by type of field
- Licensing information
- Details on geology and well data
- Reserves and resources
- Production profile
- Development concept
- Costs (capital and operating)
- Sales contracts
- Fiscal and regulatory
- Economic assumptions (cash flow, discount rate, inflation, oil, gas and carbon price, exchange rate)