A consultation period over the environmental impact assessment for the giant Johan Sverdrup development and its power supply proposal has started, Statoil announced today (November 3).
Johan Sverdrup is one of the biggest discoveries on the Norwegian Continental Shelf since the mid-1980s and ranks among the biggest developments in the years ahead.
Image: The Johan Sverdrup concept, which includes a power from shore proposal.
It is estimated that the first-phase development of the Johan Sverdrup field development will create around 51,000 man-years nationally, of which as many as 22,000 are expected to be performed by suppliers in Norway and about 12,000 by their subcontractors.
Calculations show that 2700 man-years will be created in an average year in the production phase, with 3400 man-years expected to be created at peak field development.
Based on estimates from Agenda Kaupang it is possible for the Norwegian supplier industry to be awarded more than 50% of the assignments in the construction phase and around 90% in the operating phase.
According to a provisional estimate, total production revenues over 50 years may amount to as much as NOK 1350 billion. Of this amount, corporation tax alone will give the Norwegian state NOK 670 billion in direct revenue. Total investments for the first development phase are NOK 100-120 billion, while production will be in the range of 315,000-380,000 bbl/d.
The 200sq km field will be developed in stages. The partners are currently working on various development scenarios for the various phases in order to ensure that the first construction phase forms the basis for an overall, integrated development.
“We are planning for a stepwise field development with various installations tied back to a joint field centre. This will ensure continuity and comprehensive resource utilization and also generate the greatest possible added value for our owners,” says Arne Sigve Nylund, Statoil executive vice president for Development & Production Norway.
Depending on the future choice of capacities and technical solutions, an early estimate for full development indicates NOK 170-220 billion with daily production put at 550,000-650,000 bbl/d.
The environmental impact assessment forms part of the plan for development and operation that is expected to be handled by the Storting (Norwegian parliament) next year and expected to be prepared and agreed by the partners in the beginning of February 2015.
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