Aker BP ASA has embarked on construction activities for the Yggdrasil area project and the Valhall field extension project, both situated on the Norwegian side of the North Sea.

The Yggdrasil area contains multiple discoveries and holds an estimated 650 million barrels of oil equivalent (MMboe), while the Valhall extension project targets approximately 137 MMboe, as per project descriptions on Aker BP's website. These projects are scheduled to commence production in 2027.

In a press release, Aker BP celebrated the first official steel cutting for the Yggdrasil and Valhall PWP-Fenris developments at Stord, marking the start of three years of intensive activity and job creation throughout Norway.

The Yggdrasil area includes the Ost Frigg Beta/Epsilon wildcat well, which became Norway's longest-ever exploration well, with a total depth of 8,168 meters (26,797.9 feet), as confirmed in an Aker BP media release following the completion of drilling on June 9.

Aker Solutions ASA has been selected for the construction phase of these projects, with over 200 Norwegian supplier companies contributing directly to the developments.

Knut Sandvik, Senior Vice President for Projects at Aker BP, emphasized the significant value creation, tax revenues, and the long-term benefits these development projects will bring. He highlighted their importance in advancing Aker BP's ambition to become a low-cost, low-emission, and profitable oil and gas company with attractive returns.

Yggdrasil is being developed in collaboration with Equinor ASA and PGNiG Upstream Norway AS under three licenses, with Aker BP serving as the operator for the entire area. Valhall is a partnership between Aker BP and Pandion Energy AS, while the Fenris field involves Aker BP and PGNiG.

The majority of the output from these projects, 65%, is intended for Norway, while the Valhall extension project also aims to increase gas exports to Europe. It is expected to substantially boost gas exports from Valhall to Europe and more than double gas processing capacity.

This development follows Norway's surpassing of Russia as the European Union's top natural gas supplier in 2022 amid trade sanctions related to the Ukraine conflict, as reported by Eurostat, the EU statistics agency.

Additionally, Aker BP recently initiated construction for three discoveries in the Norwegian Sea, collectively known as the Skarv Satellite Project, reinforcing its position as a key player in the region's energy industry. The project extends production on Skarv and is set to commence production in the third quarter of 2027, with an expected recovery of 120 MMboe, primarily in gas.