Aker BP’s plans for the Valhall Flank West and Skogul developments in the North Sea have received the green light from Norway’s Ministry of Petroleum and Energy.

In the southern part of the North Sea, plans for the Valhall field include use of an unmanned wellhead platform, which will be connected to the Valhall Field Center. Aker BP said expected resources from the field are about 9.5 million standard cubic meters of oil equivalents. If all goes as planned, the project—estimated to cost about $700 million—will start production in fourth-quarter 2019.

“It is positive that there is a lot of activity on Valhall and that further investments will be invested in the development of the field through the development of Valhall Flank West,” Norway’s Minister of Petroleum and Energy Terje Søviknes said in a statement. “Valhall is a field that has been in operation for a long time and will continue to produce for decades to come. The field has contributed enormous values to Norwegian society.”

The project continues the development of the Tor Formation on the western flank of the Valhall Field, which started production in 1982. According to the plan submitted to Norwegian authorities, there will be six producers with an option to convert two producers into water injectors. The normally unmanned installation will have 12 well slots with helideck access.

The Skogul development, formerly known as Storklakken, is located in the central North Sea and is a smaller project carrying an estimated price tag of about $191 million. Estimated recoverable reserves are about 1.6 million standard cubic meters.

“It’s important that companies get profitability from smaller discoveries,” Søviknes added. “The Skogul Field is just such a field and will contribute to value creation and government revenue.”

Skogul will be developed as a subsea tiebackto the Alvheim FPSO, which is about 30 km (19 miles) away from the field. Production is expected to begin in first-quarter 2020.

Aker BP is the operator for both developments, holding a 90% interest in Valhall Flank West and 65% in Skogul. The company’s Valhall Flank West partner is Pandion Energy, while PGNiG Upstream Norway is a partner in the Skogul development.

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