Aker BP projects face major cost increases
According to Norway’s budget proposal,
costs for development projects have risen significantly.
The Yggdrasil project’s cost increased by 32% to $17.59 billion.
The Valhall-Fenris project’s cost rose by 25% to $7.5 billion.
Aker BP attributed 65% of the increase to the Norwegian krone’s depreciation against the U.S. dollar, with inflation and supply chain issues also contributing.
Despite the rising costs, Aker BP stated that both projects remain on track for their 2027 production start dates.
Equinor’s North Sea developments
Rosebank field, Equinor, alongside its partner, resubmitted plans to develop the Rosebank oil and gas field west of Shetland. The submission included an environmental assessment detailing the project’s lifetime emissions, which environmental campaigners described as substantial.
Offshore electrification abandoned: Citing profitability issues and high costs, Equinor canceled plans to electrify several of its offshore platforms in the Halten and Snorre areas. The move was met with criticism from environmental groups and members of Norway’s parliament, as the decision jeopardizes the country’s climate goals.
Note by Alessandro Bazzoni.