Aker BP Makes Big Oil Discovery in North Sea

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--A day after the Norwegian government reported an uptick in crude oil production, Aker BP (Lysaker, Norway) said Thursday that it made a significant oil discovery in the North Sea.

Dubbed Omega Alfa, Aker BP said it discovered new reserves in the Yggdrasil area in the Norwegian waters of the North Sea. At between 96 million and 134 million barrels of oil equivalent (Boe), the company believes the discovery is the largest commercial find in Norwegian waters in a decade.

Aker BP started drilling in May using the Deepsea Stavanger rig, which drilled a total of 28 miles over a three-month campaign. Five exploration targets--Omega, Alfa, Alfa South, Sigma NE and Pi--were identified. In July, the company estimated the reserves at between 20 million Boe and 40 million Boe, but was raised considerably following the completion of the campaign.

Karl Johnny Hersvik, the company's chief executive officer, said the discovery at Omega Alfa could point to more than 1 billion barrels of oil in the Yggdrasil area of the North Sea.

"Yggdrasil is the largest field development project currently underway on the Norwegian continental shelf," the company added. First oil is expected by 2027.

The announcement followed the release of July production figures from the Norwegian Offshore Directorate (NOD), the nation's offshore regulator. Norwegian crude oil production averaged 1.96 million barrels per day (BBL/d) last month, about 8.2% higher than the government expected.

With new developments coming onstream in Norwegian territorial waters, oil production was up 16.8% month-on-month to July and 7.2% higher than July 2024.

Aker BP, however, took a hit during the second quarter in a low-price climate, with net income of $2.6 billion marking a 19% decline from the three-month period ending March 31. Production averaged 415,000 Boe/d and the company raised its guidance from a low-end of 390,000 Boe/d to 400,000 Boe/d.

The NOD, meanwhile, pointed to the recent launch of the Johan Castberg field as a stimulant to oil production trends. Officially launched early this month, Johan Castberg will produce for 30 years and at its peak will yield 220,000 Boe/d.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Plant Database can detailed look at Johan Castberg here.

NOD has identified 13 discoveries so far in Johan Castberg, two of which were made this year. While Aker BP said its North Sea discovery was among the largest, the directorate reported that most of the remaining reserves are in the Barents Sea. A lack of export solutions is a deterrent, however, to investors.

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