Johan Sverdrup development approved 

The plan for development and operation (PDO) for Johan Sverdrup, phase one, was approved by the Ministry of Petroleum and Energy Thursday, 20 August.

Bilde Johan Sverdrup field illustration.

In addition the associated plans for installation and operation (PIO) for transportation pipelines and power supply from shore were approved.

Bilde

Arne Sigve Nylund, executive vice president for Development and Production Norway.
(Photo: Harald Pettersen)

“We are delighted that the development plan for the Statoil-operated Johan Sverdrup field has been approved. The field is of great importance, and will generate substantial spin-offs and value for partners and society for more than 50 years.  Focused efforts are now underway in the partnership to ensure that the opportunities and enormous values in the Johan Sverdrup field are captured,” says Arne Sigve Nylund, executive vice president for Development and Production Norway.

“We are on schedule in the Johan Sverdrup development. The project activities will now be stepped up, and more contracts will be awarded in the autumn. Last week the first piece of the Johan Sverdrup development, the pre-drilling template, was installed on the field in the North Sea.  In addition the construction of the first jacket has started at Kværner Verdal. Contracts worth more than NOK 40 billion have been awarded so far in the development, 75 percent of which have been landed by suppliers with Norwegian invoice addresses,” says Øivind Reinertsen, senior vice president for Johan Sverdrup.

Bilde

Øivind Reinertsen, senior vice president for Johan Sverdrup.
(Photo: Ole Jørgen Bratland)

The Johan Sverdrup oil field will be developed in several phases. Phase one consists of four bridge-linked platforms, in addition to three subsea water injection templates.

The ambition is a recovery rate of 70%, allowing for advanced technology for increased oil recovery (IOR) in future phases. The phase one development has a production capacity in the range of 315,000-380,000 barrels per day. First oil is planned for late 2019.

The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil.

Facts

• Johan Sverdrup is located on the Utsira High in the North Sea, 155 kilometres west of Stavanger

• At a water depth of 110-120 m, the reservoir lies at approx. 1900 m depth covering an area of 200 km2

• The field will be developed in phases, the first phase including a field centre, wells, oil and gas export solutions, and power from shore

• Oil from the field will be piped to the Mongstad terminal in Hordaland

• The gas will be transported to Statpipe, and from there to the Kårstø processing plant in North Rogaland

• Daily production during Phase 1 is estimated at 315,000 – 380,000 barrels

• Full production is estimated at 550,000 – 650,000 barrels of oil equivalent per day, accounting for some 40% of total oil production from the Norwegian continental shelf

• According to the impact assessment: total production revenues of NOK 1,350 billion over 50 years and corporation tax payable to the Norwegian state is estimated at NOK 670 billion

• The development of Phase one is estimated to generate some 51,000 man-years - 22,000 man-years of which are expected to be delivered by suppliers, and some 12,000 man-years by their sub-suppliers

• An average year is estimated to generate 2,700 man-years in the operating phase, and 3,400 man-years during full field development