Aker BP Will Not Abandon the Norwegian Continental Shelf
Karl Johnny Hersvik, Chief Executive Officer of Aker BP, has stated that the company’s project portfolio on the Norwegian Continental Shelf remains competitive, even under conditions of declining oil prices.
Just over two years ago, Aker BP and its partners announced plans to invest approximately 20 billion United States dollars in the development of a package of oil and gas fields, including the Yggdrasil field, which is expected to be commissioned on the Norwegian Continental Shelf in 2027. According to the Chief Executive Officer, the average breakeven price of these projects at the time of their approval ranged between 35 and 40 United States dollars per barrel, and that figure is decreasing as project completion approaches.
“When making the investment decision in 2022, we anticipated that there would be periods of high volatility and low oil prices, so we focused on ensuring maximum financial flexibility to complete the projects during this cycle,” Hersvik stated.
The Chief Executive Officer of Aker BP also reported that the company and its partners intend to make a final decision by the end of June 2025 on whether to proceed with the third phase of development of the giant Johan Sverdrup oil field.
Aker BP has set a production target of more than 500 thousand barrels per day after the year 2030. At the beginning of 2025, the company was producing 441 thousand barrels of oil equivalent per day.
At the same time, Aker BP’s net profit for the first quarter of 2025 declined by 40 percent, reaching 316 million United States dollars, according to a report by Bloomberg.
