Operator Aker BP and licence partners ConocoPhillips Skandinavia and Lundin Energy Norway submitted the PDO to the Ministry in June last year.
The KEG development will contribute to extend the lifetime of the Alvheim field, improve production and reduce unit costs. Total investments in the project are projected at around NOK 8 billion (appr. USD 1 billion) and production is scheduled to start in the first quarter of 2024. Recoverable reserves in KEG are now estimated at around 50 MMboe.
The development comprises the two discoveries Kobra East and Gekko in licence 203. The field will be developed with subsea installations connected to the production vessel on the Alvheim field (Alvheim FPSO), which is located in the Norwegian part of the central North Sea near the UK border.
The KEG development will involve a real marathon under the seabed. The plan is to drill about 42 kilometres from a total of four multi-branch wells in the reservoir. Drilling costs make up a major part of the investments in the project.
The drilling will take place from two drilling locations, Gekko South and Gekko North, and the subsea equipment on the seabed is designed with a view toward flexibility and the possibility of further developments in the future.
