Aker BP’s Yggdrasil, Valhall-Fenris Costs Surge
October 16, 2025
The cost of Aker BP's major ongoing oil and gas development projects, Yggdrasil and Valhall-Fenris, has risen by 32% and 25% respectively from nominal estimates a year ago, Norway's budget proposal showed on Wednesday.
The Yggdrasil project, the largest project under development off Norway since 2019, is now expected to cost 177.6 billion crowns ($17.59 billion), up from a nominal estimate of 134.4 billion crowns forecast a year ago.
The project to build a new processing platform for Aker BP's Valhall field, in combination with the development of the nearby Fenris gas discovery, will now cost 75.9 billion crowns, up from a nominal estimate of 60.9 billion crowns seen previously.
Crown Weakness Vs Dollar Accounts for Most of Cost Increase
Some 65% of the cost increase, which was measured in 2025 crowns, was due to the Norwegian currency's weakening against the U.S. dollar, Aker BP said in a separate statement.
Other contributing factors included higher inflation, a tighter suppliers' market and the addition of the East Frigg discovery to the Yggdrasil development.
Yggdrasil and Valhall-Fenris were originally estimated to cost nominal 120.8 billion crowns and 52.9 billion crowns, when the government approved them in 2023. Both projects are still due to start production in 2027, as previously expected, Aker BP said.
Despite the crown-denominated cost increase, Aker BP said it would benefit in the future.
"Through the integration of East Frigg and the strengthening of the U.S. dollar, estimated revenues from the Yggdrasil area alone are estimated to be more than 100 billion crowns higher than previously expected," its CEO Karl Johnny Hersvik said in a statement.
Meanwhile, Aker BP's costs at several smaller developments - Alve Nord, Idun Nord and Oern - have increased to a total of 23.2 billion crowns from original nominal estimates of 17.4 billion, the budget document showed.
Aker BP said its overall portfolio of ongoing development projects off Norway totalled 288 billion crowns in gross investments.
($1 = 10.0972 Norwegian crowns)
(Reuters - Reporting by Nerijus Adomaitis; Editing by Gwladys Fouche and Joe Bavier)
