Statoil claims to have halved the capital expenditure cost for the second phase of its massive Johan Sverdrup development.
The first phase of the planned multi-platform project is already under development, with first oil scheduled for late 2019.
The Norwegian operator is now proceeding with phase two plans ahead of an investment decision and submission of the plan for development and operation (PDO) in Q2 of 2018.
Phase two is scheduled to come on stream in 2022
Statoil’s project director for Johan Sverdrup, Kjetel Digre, said: “We must take a generational perspective on the Johan Sverdrup development. Working closely with partners and government authorities we now have a plan for Phase 2 that maximizes value for society, industry and the licensees.
“The Johan Sverdrup suppliers have demonstrated a willingness and capabilities to develop good solutions in a partnership with us. The contributions have been key to the improvements we have achieved so far. We are pleased to see that this trend is being progressed in the awarded FEED contracts. And we see that Norwegian suppliers are competitive in an international market.”
Statoil has implemented several improvement programmes for phase two. Capital expenditures are now estimated at between NOK 40 – 55 billion, halving the estimate since the PDO was submitted for Phase 1 of Johan Sverdrup.
Digre said: “The quality of phase 1 and the improvement work we have performed with our partners and suppliers for phase 2 has enhanced profitability.
“The break-even price for the full-field development is now less than USD 25 per barrel and with an ambition of a world class recovery rate of 70%.”
The partnership has also decided on the development concept for Johan Sverdrup.
Phase 1 of the development establishes a field centre consisting of four platforms on the field. Phase 2 builds on this infrastructure, adding another processing platform to the field centre.
Statoil say that overall this will result in a processing capacity of 660 000 barrels of oil per day.
A total of 28 new wells are planned to be drilled in connection with the Phase 2 development.
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