2018 came and went without Aker BP and Equinor to agree on the extension concept of the so-called Noaka area in the North Sea.
Aker BP actually signaled and hoped that one would accept the choice of the concept of how development would look a year ago.
The oil company dominated in Roche presented the results for the first quarter on Friday, and once again the company took over the project, where the two oil companies have two very different solutions that they think will work best.
By assessing Aker BP that it can recover more than half a billion barrels of oil from the field, development can be one of the next major developments on the Norwegian shelf. This is about the same amount of oil that lies in the upcoming field of Johan Kastberg in the Barents Sea.
I do not agree
The NOAKA area consists of Alvheim Nord (NOA, where Aker BP dominates as owner) and Krafla / Askja near Oseberg (KA, where Equinor dominates, but Aker BP is co-owner).
It is precisely the uneven ownership of the various licenses that makes it difficult to find a solution for development. While parties continue to talk, the miliary values remain on the seabed.
The ministry of oil and energy was previously included in the case, but last fall it was decided to allow the parties to decide for themselves.
The head of Aker BP, Carl Johnny Herwick, opens the door to buy and sell proprietary interests in the area to be suitable for resolving the conflict:
– Yes, that's an opportunity. The entire commercial space should be explored alongside the technical ones, says Herschwick at E24 and continues:
– There must be some form of commercial model, whether there is an imbalance (owned by different licenses, journ.anm.), Then capital allocation, contributions, tariffs or something else is required.
The numbers of Aker BP showed, as expected, a certain decline in revenues and revenues, primarily due to a slightly lower oil price than a year ago. Shares ended at 6.15 percent on Friday afternoon, but oil prices also fell about two dollars through trading day.
He ruled out Equinor's decision
The choice is between the Equinor solution with two smaller, primarily unmanned platforms that are deployed a bit, while Aker BP requires a central platform to be equipped and which should be able to connect with the many discoveries in the area.
Aker BP calls his PQ concept.
In the securities market in January, Aker BP went on an unusual step in which cited some key figures for both concepts. Typically, the public does not get access to numbers about different solutions, but about the solution that has been finally selected.
Aker BP not only believes it can collect more oil from the Equinor's solution (around 550 vs. 330 million barrels), but also believes that their solution will be more profitable (that the balance cost needed to turn the project into in plus is 35 against 41 dollars for a container for Equinor).
Equinor has so far refused to comment on the specific claims of Aker BP.
"We are still striving for a solution, and we still believe that the PQ solution provides the best use of resources and is the most problematic and profitable," said Aker BP chief Carl Johnny Herwick during a presentation on Friday.
He now described the last thing that happened internally in the permits between Equinor, Aker BP and others included:
– So we rejected the solution of Krafla UPP (yes Equinor, journ.anm.). It is now off. Aker BP has in the proposal of Krafla, which we propose PQ, which we do not only believe is the best for the area, but for Krafla, said Hersvik and added:
– Our partner is now assessing the PQ solution. We have experienced the PQ concept to the point where we believe that we can determine that this is the best, and we are ready to move on.
From the analytical team, the manager of "Aker BP" was asked, among other things, as an additional delay will affect the investment plans of Aker BP.
Aker BP's manager pointed out that so far they have not tied up a lot of money and personnel for the Noaka project and added:
– The investments planned for Noka in the short term can be used for drilling more production sources elsewhere. So, in the short term, Aker BP can be positive for driving cash flow.