Costs Rise for Aker BP's Yggdrasil and Valhall-Fenris Oil and Gas Projects
October 7, 2026
The cost of Aker BP's major ongoing oil and gas development projects, Yggdrasil and Valhall-Fenris, has risen by 9.8% and 23%, respectively, from nominal estimates a year ago, data from the government's fiscal budget showed on Wednesday.
The increase was in line with projections made by Aker BP in July, a company spokesperson said.
The Yggdrasil project, the largest project under development off Norway since 2019, is now expected to cost 195 billion Norwegian crowns ($20.41 billion) up from a nominal estimate of 177.6 billion crowns one year ago.
The project to build a new processing platform for Aker BP's Valhall field, combined with the development of the nearby Fenris gas discovery, is now expected to cost 93.4 billion crowns, up from a previous estimate of 75.9 billion crowns.
Yggdrasil and Valhall-Fenris were originally projected to cost 120.8 billion crowns and 52.9 billion crowns, respectively, when they were approved by the government in 2023.
Aker BP flagged a cost rise in July citing updated estimates for construction of offshore installations and extra resources needed to meet the 2027 completion deadline.
Estimates for Yggrasil project also increased due to the addition of new, recently discovered resources that expanded the work's scope, as well as due to additional wells at Valhall-Fenris, the fiscal budget showed.
Both projects were on track to start production next year, according to the government documents.
($1 = 9.5520 Norwegian crowns)
(Reuters - Reporting by Nerijus Adomaitis, editing by Terje Solsvik)
