Statoil’s plans for the first development phase of the massive Johan Sverdrup field have been approved by the Norwegian government.
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 NOK 220billion ($26.80billion), of which the first phase is budgeted at NOK 117billion.
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 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 associated plans for installation and operation (PIO) for transportation pipelines and power supply from shore were also approved by the Ministry of Petroleum and Energy.
Arne Sigve Nylund, Statoil’s executive vice president for Development and Production, said: “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.”
Øivind Reinertsen, senior vice president for Johan Sverdrup, added: “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 40billion have been awarded so far in the development, 75% of which have been landed by suppliers with Norwegian invoice addresses.
Statoil aims to deliver a recovery rate of 70%, allowing for advanced technology for increased oil recovery (IOR) in future phases.
The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil.
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