Statoil and its partners have submitted their development plan for the largest oil field on the Norwegian Continental Shelf (NCS) since the 1980s – a project tipped to have “ripple effects” through the whole Norwegian economy for years to come.
The NOK 117 billion (US$15.4 billion) phase one plan for the giant Johan Sverdrup field comprises four bridge-linked platforms, with power from shore, and three subsea water injection templates. It was submitted to the Norwegian Ministry of Petroleum and Energy today (February 13) and is expected to the approved this Spring. First oil is expected for the end of 2019.
Two plans for the installation and operation for the pipeline transportation system and power from shore solution will be submitted separately.
Johan Sverdrup, sited on the Utsira High in the North Sea, 155km west of Stavanger, is one of the five biggest oil fields on the Norwegian continental shelf. With expected resources of between 1.8 – 2.9 billion boe, it will also be one of the most important industrial projects in Norway over the next 50 years.
The field is about 1900m deep, in 110-120m water depth, and covers about 200sq km.
The full field development cost is estimated at NOK 170-220 billion ($22.4-28.9 billion), unlocking up to 3 billion boe. Phase one recoverable resources are projected at 1.4-2.4 billion boe.
The partners hope to recover 70% of the resources using IOR technologies. Development phase one will have a 315,000-380,000 bbl/d production capacity. Full production is estimated at 550,000 – 650,000 boe/d, accounting for some 40% of total oil production from the NCS.
Contracts for the development have already been issued, with Kvaerner inked to deliver the riser platform jacket and Aker Solutions signed up for detailed engineering and procurement management on the riser and processing platform topsides, in addition to hook-up work and gangways for the entire field.
Øivind Reinertsen, senior vice president for the Johan Sverdrup project, says: "The Johan Sverdrup development will create ripple effects for the whole society. The field will need the contribution of many suppliers, like a complex jigsaw puzzle where all pieces must be in place before we cross the finish line. We are excited about getting started.”
"This is a great day. We are delivering the PDO for the largest oil discovery on the NCS since the 1980s. Johan Sverdrup will generate value of great importance to Norway through several decades. The field’s economy is robust also at current oil prices," Statoil CEO Eldar Sætre says (pictured, photo by Harold Pettersen/Statoil).
Oil from the field will be piped to the Mongstad terminal in Hordaland. The gas will be transported to Statpipe, and from there to the Kårstø processing plant in North Rogaland.
The development of Phase one is estimated to generate some 51,000 man-years - 22,000 man-years of which are expected to be delivered by suppliers, and some 12,000 man-years by their sub-suppliers. An average year is estimated to generate 2700 man-years in the operating phase, and 3400 man-years during full field development.
The partners on the project are: Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil.
Read more:
The mighty Johan Sverdrup - Meg Chesshyre takes an in-depth look at the Johan Sverdrup development.
Aker lands latest Johan Sverdrup contract
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