OSLO, NORWAY: Operator Aker BP and partner Pandion Energy have reported that oil production has started from Hod B in the southern North Sea. Aker BP and partner Pandion Energy expects Hod to produce 40 million barrels of oil equivalent.
The first steel for Hod B was cut in Aker Solutions’ yard in Verdal, the day after the Norwegian Parliament adopted temporary changes in the petroleum tax regime in June 2020.
“Production start-up from Hod B less than two years after, is great news! It demonstrates how the temporary tax changes, matured in the spring of 2020 when the industry was paralyzed by a pandemic and a sharp fall in oil prices, has had a real impact. Aker BP and Pandion Energy responded immediately to the politicians’ expectation of creating activity for the supplier industry across the country,” says Karl Johnny Hersvik, CEO of Aker BP.
“There are many who can celebrate the start of profitable production with almost zero CO2 emissions from the Hod field. Through projects like Hod B, we are creating value both for the company, partners, alliance partners, owners and the Norwegian society at large. We are also contributing to sustain a world-leading supplier industry in Norway. I am especially proud of the fact that, through the Hod project, Aker BP has contributed to the vocational training of 50 apprentices”, Hersvik adds.
In line with the rapid sanctioning of Hod B, the project has been both safely and efficiently delivered through a demanding period: 14 months after the first steel was cut in Verdal, the platform was installed offshore – in accordance with the plan.
Hod B is a normally unmanned wellhead platform, remotely operated from the Valhall field centre. Production from the Hod field will have close to zero CO2 emissions thanks to power from shore.
CEO Jan Christian Ellefsen in Pandion Energy states the following: “This is an important milestone in revitalising the Valhall area and will increase our production on the NCS further. For Pandion Energy, this also marks the successful development of our third PDO, all with a clear environmental profile being powered from shore with ultra-low CO2 emissions.”