Aker BP Commences Construction on Yggdrasil and Valhall PWP-Fenris Developments

by Anna

Norwegian Oil and Gas Giant, Aker BP, Embarks on Major Projects

Stord, Norway – In a significant milestone, Norwegian oil and gas company Aker BP celebrated the official steel cutting ceremony for its two major developments, Yggdrasil and Valhall PWP-Fenris, situated on the Norwegian shelf. The event, which took place in Stord, marks the commencement of three years of heightened activity and the creation of thousands of jobs across various yards and suppliers throughout Norway.

Knut Sandvik, Senior Vice President of Projects at Aker BP, expressed his excitement, saying, “It’s fantastic to get started on construction. Now we start seeing the physical result of many years of planning and detailed engineering. These projects will contribute to valuable growth in Aker BP and will be significant for local communities up and down the Norwegian coastline in the years ahead. They will secure activity, jobs, and contribute to further developing the industry that will take Norway into new value chains.”


Aker BP’s license partners for Yggdrasil and Valhall PWP-Fenris include Equinor, PGNiG Upstream Norway, and Pandion Energy. Notably, around 65 percent of the Norwegian share of deliveries in the development projects will be realized in Norway, creating approximately 130,000 full-time equivalents, with about half of these jobs generated during the development phase.


Aker BP has already engaged over 200 supplier companies in Norway, all contributing directly to these monumental developments.


Peter Kupka, Project Director for Fixed Facilities Deliveries in Yggdrasil, emphasized the importance of these projects in terms of competitiveness for suppliers, saying, “It is very gratifying to see that the projects are securing activity and boosting competitiveness for suppliers both small and large. Today marks the start of a new phase, with mass mobilization of people and heavy construction work both in Norway and internationally. We will be there in all the key locations, to follow up important equipment deliveries and keep a close eye on construction work going forward.”


Rannveig Storebø, Project Director for Valhall PWP-Fenris, underlined the significance of cooperation among various stakeholders and partners in realizing these projects. She stated, “Yggdrasil and Valhall PWP-Fenris are realized through good cooperation with license partners, strategic partners, alliance partners, and suppliers. Many people played a part in bringing us here today, and I want to say thank you very much and congratulations to all of them. Now, together, we will make sure to deliver the projects safely and according to plan.”

Aker Solutions, situated in Stord, will play a crucial role in delivering the topsides for the new production platform on Valhall and the Hugin A production and living quarters platform in the Yggdrasil area. This endeavor will be undertaken in partnership with Aker BP, ABB, and Siemens Energy as part of the Fixed Facilities Alliance. This significant step marked the first steel cutting for these groundbreaking projects. Håkon Skofteland, Aker BP’s Project Manager for Hugin A, and Rannveig Storebø, Project Director for Valhall PWP-Fenris, had the honor of initiating this milestone.

Additionally, Aker Solutions’ yards in Egersund, Verdal, and Sandnessjøen will be actively involved in implementing Yggdrasil and Valhall PWP-Fenris, welcoming over 100 new apprentices every year. Other notable contributors include the Nymo yard in Grimstad, Rosenberg Worley in Stavanger, Aibel in Haugesund, and Leirvik AS on Stord, all of which will provide substantial deliveries and take in apprentices.

Knut Sandvik, SVP Projects at Aker BP, summarized the significance of these development projects, stating, “These development projects will contribute significant value creation and tax revenues for many years to come. They are also important for Aker BP because they help ensure that we can deliver on our ambition to create the oil and gas company of the future, with low costs, low emissions, profitable growth, and attractive returns. And now the ball is rolling!”

Background on Yggdrasil and Valhall PWP-Fenris

The development plans for Yggdrasil and Valhall PWP-Fenris received approval from the Norwegian parliament on June 5th and were subsequently sanctioned by the Ministry of Petroleum and Energy on June 28th of this year.

Yggdrasil comprises the Hugin, Fulla, and Munin license groups and is located between Alvheim and Oseberg in the North Sea. Partners in this area include Equinor and PGNIG Upstream Norway. The gross resources in the area exceed 700 million barrels of oil equivalent. The development entails extensive new infrastructure, including three platforms, nine subsea templates, new pipelines for oil and gas export, and power supplied from shore. The entire Yggdrasil area will be remotely operated from an integrated operations center and control room onshore in Stavanger.

Valhall PWP-Fenris, a joint development in the southern part of the North Sea, includes Pandion Energy AS as the partner in Valhall and PGNiG Upstream Norway AS as the partner in Fenris, located 50 kilometers away. The development encompasses a new centrally located production and wellhead platform connected to the Valhall field center via a bridge and an unstaffed installation at Fenris, linked back to Valhall through seabed pipelines. Power for the development will be sourced from the existing power from shore system. The project is estimated to bring new reserves of 230 million barrels of oil equivalent and secure a lifetime extension for Valhall beyond 2028.

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