Aker BP begins production at Tyrving Oilfield amid legal battle between the government and Aker BP over approval

Aker BP, a Norwegian oil company, has begun production at its Tyrving off-shore oilfield. The Norwegian government is trying to overturn the court's ruling that the project approval was invalid due to the failure to evaluate the climate impact.

The Oslo District Court in January ruled that the Norwegian energy ministry failed to assess fully the climate impact of the production and use of oil and natural gas when it approved three offshore projects including Tyrving and that the permits were invalid.

The government has appealed that ruling, and an hearing for a portion of the case will begin on Wednesday. The final decision on all issues could take months or even years.

Aker BP's Chief Executive Karl Johnny Hersvik will be expected to testify at the Borgarting Court of Appeal this week, at the request of the government.

Aker BP may not be a part of the lawsuit but its output could suffer from the revocation of permits.

Greenpeace, Young Friends of the Earth and Aker BP also filed a lawsuit challenging the approval of Aker BP’s Yggdrasil project and Equinor’s Breidablikk project.

Environmentalists claimed that the ministry of energy failed to evaluate the global impact generated by emissions when oil and natural gas are used.

Greenpeace Norway's Frode Pleym said that it was shameless for Aker BP and the government to allow this oilfield to be built as we enter the appeals hearing.

Aker BP has said that the start-up of the field had nothing to do with the court case. A permit for production started by the Norwegian Offshore Directorate (a regulator in the industry) on August 13. Aker BP said the field's start-up had no connection with the court case, and a permit to begin production was issued by Norwegian Offshore Directorate, an industry regulator, on Aug. 13.

Breidablikk began production in October 2023. Yggdrasil will begin in 2027. (Reporting by Nerijus Adomaitis, editing by Terje Solsvik, Alexandra Hudson)

(source: Reuters)