Partners Statoil ASA, Lundin Petroleum AB, Petoro, Det Norske Oljeselskap ASA, and Maersk Oil have submitted a plan for development and operation (PDO) for Phase 1 of Johan Sverdrup field to the Norwegian Ministry of Petroleum and Energy.
The oil field will be developed in several phases. Phase 1 consists of four bridge-linked platforms and three subsea water injection templates, with a production capacity of 315,000-380,000 barrels of oil equivalent per day (boe/d).
Production from Phase 1 is expected to launch in late 2019. The partners are targeting a recovery rate of 70%. Expected recoverable resources are projected between 1.4–2.4 billion boe.
Capital expenditure for Phase 1 is estimated at 117 billion Norwegian kroner (about 15 billion dollar), which includes offshore facilities, oil and gas export pipelines, development wells, and power supply from shore.
Twenty-two appraisal wells drilled on Johan Sverdrup have shown that the reservoir is of “exceptional quality” and multiple production tests also indicate well productivity will be “very high,” partner Lundin says. As a result, Lundin expects “very short” periods from ramp-up to plateau production for Phase 1 and subsequent phases. Phase 2 is expected to start production in 2022, with a production capacity of 315,000-380,000 boe/d.
“We are delivering the PDO for the largest oil discovery on the Norwegian continental shelf since the 1980s,” said Eldar Saetre, operator Statoil’s chief executive officer. “Johan Sverdrup will generate value of great importance to Norway through several decades. The field’s economy is robust also at current oil prices.” The field’s breakeven price is $40/bbl.
“Lundin in particular deserves credit for discovering the field in 2010,” Wood Mackenzie says.“ Overall, the field will provide 25% of Norwegian production by 2025, out-producing the entire UK sector.