Norway's Aker BP ASA said on Dec. 18 it will start drilling and construction soon at its Grey Seal oil and gas field in the Norwegian Sea, and also expects to begin production in fourth-quarter 2021.

Located 210 km (130 miles) offshore, near the existing Skarv Field, the investment costs of Grey Seal are expected to touch 1.2 billion Norwegian crowns (US$140 million).

"Based on a development solution with reuse of existing infrastructure, this project has become very profitable," Project Manager Mette Nygaard said in a statement.

Containing an estimated 13 MMboe, the project has a break-even cost of just $15/bbl, the company said.

Oil from Norwegian fields currently sells at about $50/bbl.

Equinor ASA, Wintershall Dea and PGNiG are partners in the field.

(US$1 = 8.6094 Norwegian crowns)