Norway's Aker BP ASA said on Dec. 18 it will start drilling and construction soon at its Grey Seal oil and gas field in the Norwegian Sea, and also expects to begin production in fourth-quarter 2021.
Located 210 km (130 miles) offshore, near the existing Skarv Field, the investment costs of Grey Seal are expected to touch 1.2 billion Norwegian crowns (US$140 million).
"Based on a development solution with reuse of existing infrastructure, this project has become very profitable," Project Manager Mette Nygaard said in a statement.
Containing an estimated 13 MMboe, the project has a break-even cost of just $15/bbl, the company said.
Oil from Norwegian fields currently sells at about $50/bbl.
Equinor ASA, Wintershall Dea and PGNiG are partners in the field.
(US$1 = 8.6094 Norwegian crowns)
Recommended Reading
Shale Outlook Eagle Ford: Sustaining the Long Plateau in South Texas
2025-01-08 - The Eagle Ford lacks the growth profile of the Permian Basin, but thoughtful M&A and refrac projects are extending operator inventories.
SM’s First 18 Uinta Wells Outproducing Industry-Wide Midland, South Texas Results
2025-02-20 - Shallow tests came on with 685 boe/d, 95% oil, while deeper new wells averaged 1,366 boe/d, 92% oil, from two-mile laterals, SM Energy reported.
DOE Awards Pioneer Energy $27MM for Emissions Reduction Projects
2025-01-08 - Pioneer Energy said it will allocate most of the funds toward advancing its Emission Control Treater, a near zero emissions well pad production technology, as it implements projects in the Eagle Ford, Cotton Valley and Colorado.
Improving Gas Macro Heightens M&A Interest in Haynesville, Midcon
2025-03-24 - Buyer interest for Haynesville gas inventory is strong, according to Jefferies and Stephens M&A experts. But with little running room left in the Haynesville, buyers are searching other gassy basins.
Permian to Drive Output Growth as Other Basins Flatten, Decline–EIA
2025-01-14 - Lower 48 oil production from outside the Permian Basin—namely, the Bakken and Eagle Ford shales—is expected to flatten and decline in coming years, per new EIA forecasts.