Production starts at BP Norway field

BP rose on Wednesday after announcing the successful start of production from the Skarv field in the Norwegian Sea.

BP rose on Wednesday after announcing the successful start of production from the Skarv field in the Norwegian Sea.

Production started at the site, which is a quarter-owned and operated by BP, on 31st December.

BP group chief executive. Bob Dudley, called the start-up of Skarv "a key operational milestone for BP, adding new production from one of our core higher-margin areas".

The news comes after a slew of disposals, which have totalled around $37bn since the 2010 Macondo oil disaster, and pushed shares up one per cent in early trading.

The Skarv field is approximately 210km west of the Norwegian coast in water depths of approximately 350-450m.

Discovered in 1998, it has an estimated ultimate recovery of around 100m barrels of oil and condensate and over 1.5tr cubic feet of rich gas, according to BP.

The field is anticipated to reach around 125,000 barrels of oil equivalent per day (boepd) monthly average rate (30,000 boepd net to BP) within the first six months of production.

This is expected to rise to a maximum daily rate of approximately 165,000 boepd by the year end (40,000 boepd net BP).

Rebecca Wiles, BP Norway managing director, said Skarv represented an important new source of gas to Europe.

BP Norway has a 23.84% interest in the site; its partners are Statoil ASA (36.17), E.ON E&P Norge AS 28.08% and PGNiG Norway AS 11.92%.

Recommended

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021