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Partners submit Johan Sverdrup development plan
The oil field—which lies on the Utsira High in
the North Sea, 155 km west of Stavanger—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
boe/d (OGJ Online, Feb. 13, 2014).
In addition to the PDO, the partners will also submit two plans for installation and operation (PIO) for pipeline transportation and development of power from shore. Oil from the field will be piped to the Mongstad terminal in Hordaland.
Capital expenditure for Phase 1 is estimated at 117 billion kroner, 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 (OGJ Online, Mar. 28, 2014).
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.
Capex for full field-development is estimated
at 170-220 billion kroner as of 2015, with recoverable resources between
1.7-3 billion boe—95% of which is oil—and an expected plateau production
of 550,000-650,000 b/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.
According to analysis from Wood Mackenzie, the field will provide more than 10% of Statoil’s global oil production by 2020. It will also boost returns and cash margin metrics, both key industry benchmarks. WoodMac also says the field is a “company maker” for Lundin and Det Norske. "Lundin in particular deserves credit for discovering the field in 2010,” it says. “It will quadruple Lundin's production and make up 98% of its upstream value by 2020. But project sanction means intense investment for one of the most highly leveraged companies in the sector. It’s also a vital strategic asset for Maersk Oil, as it will mitigate the company’s long-term production decline. It will add 48,700 boe/d of net peak production by 2024 to Maersk, equivalent to 18% of total volumes.”
Overall, the field will provide 25% of Norwegian production by 2025, out-producing the entire UK sector.
Statoil lets EPC contract for Johan Sverdrup platform deck
The deck will comprise three modules. Aibel will build the largest module, the main support frame, at the company’s yard in Thailand. The drilling support module, the second largest, will be built at the company’s yard in Haugesund. The final module, the drilling equipment set, will be built by partner Nymo in Grimstad.
Work on combining the three modules will start
in fall 2017 at Haugesund. The finished platform will be handed over to
Statoil in second-quarter 2018.
In addition to Statoil, the Johan Sverdrup
partnership consists of Lundin Petroleum AB, Petoro, Det Norske
Oljeselskap ASA, and Maersk Oil. The partnership has recommended Statoil
as operator for all phases.
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