Norwegian energy giant Equinor has reached an agreement to transfer the operatorship of the Krafla field to AkerBP.
In doing so the AkerBP will become the operator of all the discoveries in the NOAKA area – Krafla, Fulla and North of Alvheim.
The pair are currently operators of one field development project each in the region.
But they have agreed that having one operator is the most effective solution for further development of the area.
As a result they have struck a memorandum of understanding (MoU) to hand over the operatorship.
As it stands Equinor (OSLO: EQNR) is the operator of Krafla in the north and Aker BP is the operator of NOA Fulla in the south.
But one operator will have a “good basis for efficient project execution” and for “safe and efficient” production of the fields.
Geir Tungesvik, Equinor’s executive vice president for projects, drilling and procurement, said: “The current agreement is the result of an excellent collaboration during the past years, built on mutual trust and a common ambition of achieving lasting improvements and efficient operation on the Norwegian continental shelf (NCS).
“The best solution for the future is that Aker BP takes over the operatorship for project execution and operation of Krafla, based on the concept developed by Equinor.”
Moving forward, Equinor will ensure transfer of expertise and experience relating to the Krafla concept to Aker BP and the collaboration will continue in the development phase.
Karl Johnny Hersvik, chief executive of AkerBP, said: “Aker BP and Equinor have had an excellent collaboration during the past years on the NOAKA development. We are proud of being able to take over the Krafla operatorship, to ensure efficient project execution and operation of the whole area on behalf of the licences.”
Under the terms of the MoU the licence owners of the relevant licences will apply to the ministry for change of operator.
A transfer will be carried out when the investment decision has been approved by the licence and the plan for development and operation (PDO) has been submitted.
Equinor will still be a major licence partner in the area and will retain its existing share of 50% in Krafla and 40% in Fulla.
The companies will jointly submit the PDOs for NOA Fulla and Krafla as planned by the end of the year.
With investments in the order of $10 billion, the area development is one of the next big hotspots on the Norwegian Continental Shelf.
A high percentage of the contracts will be awarded to Norwegian suppliers, creating strong ripple effects throughout the country.