Johan Sverdrup oil field development approved

Statoil estimates Johan Sverdrup should generate $200 billion in revenues over the next 50 years. Johan Sverdrup, which is located just under 100 miles west of Stavanger, was discovered in 2010. The area covers approximately 200sq km, and the reservoir lies at around 1900m. The authorities also approved associated plans for the installation and operation (PIO) for transportation pipelines and power supply from shore. First oil on the field is planned for late 2019 and daily production during the first phase is estimated to be between 315,000 to 380,000 barrels. Full production is estimated at 550,000-650,000 boe/d, which will account for about 40% of total Norwegian Continental Shelf oil production.

The ambition is a recovery rate of 70%, allowing for advanced technology for increased oil recovery in future phases.

By approving the Unit Operating Agreement (UOA), the Norwegian Ministry of Petroleum and Energy has ruled the apportionment of the Johan Sverdrup field between the partners. The project activities will now be stepped up and more contracts will be awarded in the autumn.

“We are proud to be part of the Johan Sverdrup partnership and see this project as a strong contributor to our overall North Sea portfolio of operations and developments over the coming years”.

The largest field found in the North Sea in three decades could hold as much as 2.9 billion barrels of oil and has an estimated cost of up to 220 billion Norwegian crowns ($26.80 billion), of which the first phase is budgeted at 117 billion.

“Contracts value greater than $four.eight billion have been awarded thus far within the improvement, 75 % of which have been landed by suppliers with Norwegian bill addresses”, Reinertsen stated.

A Norwegian metal worker in late June started cutting steel for the jacket, the tower support structure, for a riser platform used for Johan Sverdrup.

The Johan Sverdrup partnership consists of Statoil (40.02 percent), Lundin Norway (22.12 percent), Petoro (17.84 percent), Det norske oljeselskap (11.89 percent) and Maersk Oil (8.12 percent).