Partners behind the giant Johan Sverdrup discovery have said that a decision on the development has been delayed until the New Year.
Statoil, Lundin and Det Norske had been due to agree concept selection on licenses PL501, PL265 and PL502 by the end of 2013. However, the partners said the project should still be on track to meet regulatory approval in 2015.
Øivind Reinertsen, senior vice president of the Johan Sverdrup field, Statoil, said: “We need to make the final clarifications and give the individual companies the opportunity to make a proper consideration. At the same time, the partners agree that we should award the FEED contract at soon as possible in order to keep momentum.”
Johan Sverdrup was originally thought to be two separate fields, Aldous Major and Avaldsnes. Johan Sverdrup is an oil field, in 110m water depth, on the Utsira High in the North Sea, 140km west of Stavanger.
Statoil this morning updated the full field gross recoverable contingent resource range to 1.8-2.9 billion boe. First oil date is estimated to be in late 2019, and production is predicted to last until 2050.
As part of the design basis, it was decided early in 2013 that the field will be developed in phases. The first phase is the establishment of a field centre consisting of four platforms.
Det norske said its understanding of Statoil’s latest capex estimates indicate total investments in the range of NOK 100 to 130 billion for the first phase of the field development, including contingencies and estimated future price escalation.
However, it said: “This is an early estimate, with uncertainties and an estimate that could be affected by the final concept decision, expected in early 2014.”
Lundin said once the final concept selection decision has been made by the partnership, in early 2014, there will be a further announcement outlining the field's development concept, including production capacity at plateau, estimated capital costs and likely timing of the different development phases.
The field will receive power from land. The partnership has recommended to transport oil from Johan Sverdrup via pipeline to the Mongstad terminal in Hordaland, and to transport the gas to Statpipe and then further to the Kårstø processing plant in northern Rogaland.
Partners on Johan Sverdrup are:
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