Equinor and partners associated with Johan Sverdrup oil field in the North Sea submitted the project’s Phase 2 plan for development and operation (PDO) to the Norwegian Ministry of Petroleum and Energy.
Partners said the project has higher estimated resources and lower investment costs than initially believed (OGJ Online, Aug. 29, 2016).
“The Johan Sverdrup field is the largest field development on the Norwegian shelf since the 1980s,” said Eldar Satre, Equinor chief executive officer. “At plateau, the field will produce up to 660,000 b/d with a break-even price of less than $20/bbl.”
Since the Phase 1 PDO in 2015, partners have reduced the total estimated investment for Johan Sverdrup full field development by more than 80 billion kroner.
The PDO for Johan Sverdrup Phase 2 also includes measures to use power from shore to the Utsira High by 2022 as outlined in the Phase 1 PDO.
Emission savings from the Johan Sverdrup field are estimated at 460,000 tonnes/year of carbon dioxide.
The updated investment estimate for Phase 1 is now 86 billion kroner (nominal kroner, project exchange rate), a 30% reduction since submission of the Phase 1 PDO.
In the Phase 2 PDO, partners reduced the investment estimate to 41 billion kroner, and the breakeven price for Phase 2 is now less than $25/bbl.
Phase 2 is scheduled to come on stream in late 2022.
Partners in the project include operator Equinor 40.0267%, Lundin Norway 22.6%, Petoro 17.36%, Det norske oljeselskap 11.5733%, and Maersk Oil 8.44%.
