Aker BP and its licence partners, Equinor and Spirit Energy, have confirmed a final investment decision for the development of the Hanz discovery in the Norwegian North Sea.
Hanz lies in the Ivar Aasen field, on the Utsira High in the northern part of the Norwegian North Sea, around 110 miles west of Karmøy.
Ivar Aasen was discovered in 2008 and was joined with other discoveries in the area, including Hanz, which was first proven in 1997. First oil from Ivar Aasen was produced in December 2016, while appraisal wells were drilled at Hanz in 2018.
Hanz sits within Licence 028 B, and operated by Aker BP with a 35% equity stake, alongside Equinor (50%), Spirit Energy (15%). It holds total reserves of around 20 million barrels of oil equivalent (boe).
Around NOK 3.3 billion (£270 million) will be invested in the development, with start-up expected during the first half of 2024, Aker BP said. It will be tied back to the Ivar Aasen platform about seven miles to the south.
The discovery was included in a full impact assessment and plan for development and operation (PDO) of Ivar Aasen in 2012, though the partners say they have worked on a new solution since then involving the reuse of existing infrastructure to improve economics and minimise emissions.
As well as the reuse of infrastructure, recovery methods have also been adapted to include use of a cross-stream well for water injection, the operator said. This results in a substantial reduction of power consumption, less use of chemicals and less equipment on the seabed.
“Over the last few years, we have matured an optimised development solution, in part through re-use of subsea production systems (SPS) from the Jette field. This development solution will be more cost-efficient and have a smaller environmental footprint than the original concept that was described when the PDO was first delivered,” says Aker BP’s SVP for operations and asset development, Ine Dolve.
Following the change in development plan since the PDO was submitted, the partnership said it will be sending a formal statement regarding the investment decision and the updated concept to the Norwegian authorities.
“The selected development solution provides both better project economy and significantly lower emissions and environmental footprint than we previously assumed. This is in line with Aker BP’s continuous search for improvements, where the goal is to produce with low costs and low emissions,” Ms Dolve added.
Ivar Aasen asset manager, Gudmund Evju said progression of Hanz was important for the development of the wider Ivar Aasen area. “Production start from Hanz in 2024 will help us maintain good production from the Ivar Aasen platform for several more years,” Mr Evju said.
“At the same time, we are searching for new oil and gas resources in the area, both through improved recovery measures and exploration, with the objective of tying additional volumes into the field centre,” he added.
Ivar Aasen currently receives power from the Edvard Grieg platform 6 miles to the south east. From 2022, the field will receive power from shore via the Johan Sverdrup field, reducing CO2 emissions, Aker BP said.
An infill drilling program is ongoing at the field, with two production wells drilled in late 2020, and plans for a new producer and water injector.
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