BP’s Skarv field in the Norwegian Sea is successfully flowing oil and gas after starting production on 31 December 2012, more than a year however after its originally planned onstream date.

The field is located approximately 210 km west of the Norwegian coast in water depths ranging from 350-450 m (1,148-1,476 ft). Discovered in 1998, it has estimated recover- able reserves of around 100 MMbbl of oil and condensate, and more than 1.5 Tcf of rich gas.

Skarv is being produced via an FPSO (Floating Production, Storage and Offloading) vessel, five subsea drilling templates and an 80 km, 26-inch gas export pipeline connected to the Gassled transportation system.

Production is expected to reach 125,000 boe/d within the first six months of production, with a peak rate of approximately 165,000 boe/d by the end of this year.

Due onstream originally in 2011, the project was hit by several delays related to equipment onboard the FPSO, as well as delays in obtaining certain services, in addition to harsh weather conditions in the latter part of 2012. These have reportedly contributed to significant cost overruns on the field, although BP has not issued any additional cost figures at this point.

BP Norway has a 23.84% interest in Skarv, with its partners being Statoil ASA (36.17%); E.ON E&P Norge AS (28.08%); and PGNiG Norway AS (11.92%). The field lies in part blocks 6507/6, 6507/5, 6507/3 and 6507/2.

BP is planning to invest US $10 Bn net over the next 5 years in projects offshore Norway and the UK.

Offshore