Norway’s Ministry of Petroleum and Energy has approved a new development and operation plan for Hod oil field, which is located in the North Sea.
The move comes around six months after project partners Aker BP and Pandion Energy submitted the plan for development and operation (PDO) for Hod to the ministry.
The Hod field will be developed with a normally unmanned installation with 12 well slots. The installation will be remotely controlled from the Valhall field centre.
It is set to be one of the first projects to be realised during the temporary changes to the Norwegian petroleum tax system that was approved by the parliament in June.
Located in production licence PL033 on the Norwegian Continental Shelf, the Hod field was discovered in 1974 and commenced production in 1990.
Production was suspended in 2013, when the original facility closed down.
Aker BP is now redeveloping the field with production slated to commence from Hod B in the first quarter of 2022.
Recoverable reserves at the field are estimated to be around 40 million barrels of oil equivalent. The redevelopment involves an investment of around $600m.
At the time of submitting the PDO, Aker BP CEO Karl Johnny Hersvik said: “With projects like Hod, we are creating significant value both for our owners and for the society at large, while we contribute to maintaining the capabilities of Norway’s world-class supply industry.”
Aker BP is the operator of the field with a 90% interest, while Pandion holds the remaining 10% stake.