Aker BP, a prominent Norwegian oil and gas company, has initiated production at the Kobra East & Gekko (KEG) development, marking a significant milestone in the Alvheim area, situated offshore Norway. The KEG project, encompassing the Kobra East and Gekko discoveries within licence 203, has realized subsea installations linked to the Alvheim Floating Production, Storage, and Offloading (Alvheim FPSO) vessel in the central North Sea, near the UK border. Anticipated recoverable reserves within the KEG Plan for Development and Operation (PDO) are estimated to reach approximately 40 million barrels of oil equivalents (mmboe).

Aker BP's CEO, Karl Johnny Hersvik, lauded the successful initiation of production at KEG as a testament to the efficiency of the alliance model, underscoring the collective efforts and shared incentives of the project's stakeholders. Additionally, Hersvik emphasized the project's role in bolstering Alvheim's reputation as one of the most cost-effective oil and gas producers in the Norwegian shelf, with an expanding resource base since its inception.

Remarkably, the KEG project has not only realized an earlier-than-expected production start but has also adhered to the original budget of NOK eight billion, reflecting efficient project management and resource allocation, as highlighted by Aker BP.

The project's development involves the drilling of a total of four multi-branch wells spanning approximately 42 kilometers in the reservoir, with drilling costs constituting a substantial portion of the project's overall investments. Aker BP commended the exceptional drilling performance at KEG, attributing it to the project's successful and cost-effective delivery within the set timeline and budget.

By introducing the KEG development, Aker BP anticipates a significant reduction in CO2 emissions per barrel, accompanied by a substantial increase in oil production from the Alvheim FPSO, extending the field's operational lifetime up to 2040. Ine Dolve, the Director of Alvheim, emphasized the significance of the KEG project in expanding the production capacity of the Alvheim FPSO, further bolstered by the impending Tyrving project scheduled for commissioning in 2025.

Aker BP operates the KEG project, collaborating with ConocoPhillips Skandinavia AS as a partner. Notably, since the inception of production at Alvheim in 2008, the area has yielded nearly 600 million barrels of oil equivalent, underscoring the region's robust contribution to Norway's oil and gas sector.