The partners of the landmark Johan Sverdrup development have wiped another NOK5billion off the final project costs.
The confirmation, which represents a 25% savings compared to original estimates, comes as the firms successfully hit the half way point for the first phase of the development.
Statoil owns an operating interest 40.0267%. Lundin Norway holds a 22.6% stake, Petoro owns a 17.3% stake, Aker BP owns a 11.5% stake and Maersk Oil owns a 8.4% stake.
Total projects costs are now NOk92billion.
Alex Schneiter, chief executive of Lundin Petroleum, said: “The world class Johan Sverdrup project is progressing really well and continues to get better and better. It is very encouraging to see that we have now passed the halfway mark in Phase 1 of the project and are ahead of schedule. It has been my long held view that costs will continue to come down and today we can announce that the Johan Sverdrup partnership has managed to lower development costs even further.”
The breakeven price for the full field development is estimated to less than $25 per barrel and the total resources in the Johan Sverdrup field are estimated to between 2.0 and 3.0 billion barrels of oil equivalent.
Phase 1 remains firmly on track for first oil in late 2019 with an estimated production capacity of 440 Mbopd. Phase 2 will add another processing platform to the field centre which is estimated to increase the processing capacity for the full field to 660 Mbopd. Phase 2 is scheduled to start production in 2022.
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