Norway’s Aker BP said on Friday it will start drilling and construction soon at its Grey Seal oil and gas field in the Norwegian Sea, and also expects to begin production in the fourth quarter of 2021.
Located 210 km (130 miles) offshore, near the existing Skarv field, the investment costs of Grey Seal are expected to touch 1.2 billion Norwegian crowns ($140 million).
“Based on a development solution with reuse of existing infrastructure, this project has become very profitable,” Project Manager Mette Nygaard said in a statement.
Containing an estimated 13 million barrels of oil equivalent, the project has a break-even cost of just $15 per barrel, the company said.
Oil from Norwegian fields currently sells at about $50 per barrel.
Equinor, Wintershall Dea and PGNiG are partners in the field.
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