Aker BP Submits Field Development Plans, Highlights Lower Investments

Aker BP ASA (AKERBP.OS) said Friday that it has submitted development plans for three oil fields, at which investments are now seen below earlier estimates.

The joint-venture company formed by Norway's Aker ASA (AKER.OS) and BP PLC (BP) said the plans for development and operation cover the Valhall Flank West, Aerfugl and Skogul fields.

Total investments for the Aerfugl development are now estimated at 8.5 billion Norwegian kroner ($1 billion), a reduction of approximately NOK2 billion compared to previous estimates, while recoverable reserves have increased substantially, it said.

For the Valhall Flank West development, total investments are now estimated at NOK5.5 billion, which represents a reduction of more than NOK1.5 billion compared to previous estimates.

The smaller Skogul project is estimated to cost NOK1.5 billion, it said.

Over the lifetime of the fields, the three projects are estimated to generate total oil-and-gas revenues of NOK100 billion, based on an oil price of $60 a barrel. Net of investments and operating costs, this will result in a total value creation of NOK70 billion, of which the Norwegian state will collect NOK52 billion in taxes.

Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @domchopping @WSJNordics

(END) Dow Jones Newswires

December 15, 2017 05:55 ET (10:55 GMT)