The Norwegian Petroleum Directorate (NPD) has announced that Ærfugl gas and condensate field is now ready to start production from Phase 1 of the two-phase development.

The Aerfugl (Ærfugl) oil and gas field is located approximately 210km west of Sandnessjøen in the Norwegian sea. It is located in Production License 212.

It lies to the west of the Skarv field and is being developed in two phases, along with the Snadd Outer field.

Aker BP is the operator of the field. Other partners include Equinor and Wintershall Dea.

NPD said: “Production is also taking place from an earlier test production well in Phase 1 and an accelerated well in Phase 2, which was drilled from an available well slot on one of Skarv’s subsea templates.”

According to NPD, production on Ærfugl will be tied into Skarv. Export of gas from Skarv will be postponed to obtain capacity for the Ærfugl gas on Skarv floating production storage and offloading (FPSO).

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By GlobalData

Ærfugl was discovered in 2000, and the plan for development and operation was approved in April 2018.

NPD development and operations assistant director Niels Erik Hald said: “It’s positive that production from Ærfugl Phase 1 will start as planned.”

Total investment costs for the Ærfugl project are estimated to be Nkr8bn ($857m).

In November last year, Aker BP announced its decision to proceed with phase 2 of the Ærfugl offshore development project, three years ahead of the original plan.