pctay123
Publish Date: Tue, 03 Sep 2024, 10:25 AM
OSLO, Sept 3 (Reuters) - Norway's Aker BP (AKRBP.OL) , opens new tab has started production at its Tyrving offshore oilfield, as the Norwegian government seeks to overturn a court ruling that its approval of the project was invalid because it failed to assess the climate impact.
In January, Oslo District Court ruled in a case brought by environmental groups that Norway's energy ministry had failed to fully assess the climate impact from the production of oil and gas when approving three offshore projects, including Tyrving, and that permits were thus invalid.
The government is appealing that ruling and a hearing on a part of the case is due to start on Wednesday. A final ruling on all aspects could be months or years away.
Aker BP Chief Executive Karl Johnny Hersvik is expected to testify this week at the Borgarting Court of Appeal at the behest of the government.
While Aker BP is not a party to the lawsuit, the company's output could suffer if permits are withdrawn.
The original lawsuit brought by Greenpeace and Young Friends of the Earth also challenged approvals of Aker BP's Yggdrasil and Equinor's Breidablikk projects.
The environmentalists argued that the energy ministry failed to assess the global impact from emissions generated when oil and gas is used.
"It's shameless of Aker BP to start up this oilfield and the state to allow it when we are entering the appeals hearing," Frode Pleym, head of Greenpeace Norway, told Reuters.
Aker BP said the field's start-up had no connection with the court case, and a permit to start production was issued by Norwegian Offshore Directorate, an industry regulator, on Aug. 13.
The Tyrving field in the offshore Alvveim cluster is estimated to hold 25 million barrels of oil, and was previously expected to start in the fourth quarter of this year.
Breidablikk started production in October 2023, while Yggdrasil is expected to start in 2027.
Sign up here.
https://www.reuters.com/business/energy/aker-bp-starts-production-tyrving-oilfield-amid-governments-legal-battle-over-2024-09-03/