Skarv Satellites project extends life of one of Norway’s key gas production areas

When Norwegian oil and gas producer Aker BP submitted plans for the Skarv Satellites project to the Norwegian ministry for approval in 2022, it expected production to start only in 2027. Four years later—or three years after construction began—the company has now started production from three new fields. While major energy projects are often accompanied by delays and extended deadlines, Skarv Satellites has come on stream a year earlier than the Norwegian company originally planned.

The project includes three separate subsea fields—Alve Nord, Idun Nord and Ørn—and is considered one of the most significant projects in the Norwegian Sea in recent years. The three new fields are directly tied back to the Skarv floating production, storage and offloading vessel (FPSO) off the Helgeland coast, allowing the use of existing infrastructure in the area.

The project is based around the Skarv production area, located in the northern part of the Norwegian Sea at a depth of 350 to 450 metres. The Skarv field itself was discovered in 1998, and its plan for development and operation was approved in 2007. Production subsequently began there on New Year’s Eve 2012.

The area was gradually expanded with the Ærfugl and Gråsel fields, which came on stream in 2020 and 2021. Skarv Satellites therefore builds on more than a decade of production in this part of the Norwegian Sea and uses existing infrastructure, including the Skarv FPSO, which has one of the world’s largest offshore gas-processing facilities of its kind.

The Skarv Satellites project represents approximately 120 million barrels of oil equivalent in recoverable resources and, according to Aker BP, is intended to support further value creation by increasing flexibility and extending the life of infrastructure around Skarv. Thanks to the efficient use of existing infrastructure, the projects also have a low carbon footprint, at approximately 4.5 kilograms of CO₂ per barrel of oil equivalent.

"The start-up of the Skarv Satellites projects is an important milestone for Aker BP. Within a single integrated project, we have brought three new fields on stream, one year ahead of the original plan. The Skarv Satellites projects strengthen one of our most important production areas and will generate significant value for many years to come,"said Karl Johnny Hersvik, CEO of Aker BP.

The total investment cost for the three separate fields within the Skarv Satellites project was estimated at approximately NOK 17 billion, or around €1.56 billion. In addition to expanding production itself, the project extends the use of already-built infrastructure in the Skarv area and confirms the importance of the Norwegian Sea for continued Norwegian oil and natural gas production.