Development contracts awarded for Johan Sverdrup Phase 2
Statoil ASA is moving ahead with Johan Sverdrup Phase 2, which will include development of another processing platform for the field center and the Avaldsnes, Kvitsoy, and Geitungen satellite areas. Discovered in 2010, the North Sea field has estimated resources of 2-3 billion boe (OGJ Online, Aug. 20, 2016).
Partner Lundin Petroleum AB said Phase 1 of Johan Sverdrup is under development with start of oil production slated for late 2019. Phase 2 development plans are to begin in second-half 2018 with production expected to come on stream in 2022. According to Statoil, Phase 2 investment will range 30-55 billion kroner. Current estimated cost for Phase 1 is 97 billion kroner.
Kvaerner has signed a contract with Statoil for delivery of a front-end, engineering, and design study on the Phase 2 jacket. The contract is a call-off from the framework agreement that was signed by Statoil and Kvaerner in 2014, including options for additional studies to review alternative installation methods.
Aker Solutions secured a FEED contract for a new processing platform and the bridge that will connect it to the development’s riser platform. The contract also includes the design of a module and the work to integrate this with the riser platform. It will be delivered in first-quarter 2018.
Aker’s FEED work is part of the 10-year framework engineering agreement awarded to the company for Johan Sverdrup in 2013. The contract includes options for continued maturing of the design as well as engineering, procurement, and management assistance work and is valued at 300 million kroner.
Johan Sverdrup’s Phase 1 development is 40% completed and includes four platforms, three subsea installations for water injection, power from shore, and oil and gas export pipelines—Mongstad and Karsto, respectively. Phase 2 builds on this infrastructure, adding another processing platform to the field center. This will result in a processing capacity of 660,000 bo/d for the full field. Citing improvements and cost reductions during Phase 1 completion, Statoil project director Kjetel Digre said, “The breakeven price for the full-field development is now less than $25/bbl.” The operator is also targeting a 70% recovery for the field.