Johan Sverdrup

On 5 October 2019, the Johan Sverdrup field came on stream more than two months ahead of schedule and NOK 40 billion below budget. This giant oil field will be a major contributor to Aker BP’s production and earnings growth in the years to come.

THE NORTH SEA GIANT IS ON STREAM

At peak, the Johan Sverdrup field will account for around one third of all oil production in Norway, delivering highly valuable barrels with record low emissions.

It was a significant moment for the operator Equinor and for Aker BP and the other partners when the Johan Sverdrup field came on stream on 5 October. Johan Sverdrup is the third largest oil field on the Norwegian continental shelf, with estimated resources of between 2.2 to 3.2 billion barrels of oil equivalent and expected resources of 2.7 billion barrels of oil equivalent.

Johan Sverdrup is expected to generate income from produc-tion of more than NOK 1,400 billion, of which NOK 900 billion will go to the Norwegian state and society. The operation phase is expected to last more than 50 years and will pro-vide employment corresponding to more than 3,400 full-time equivalents on average every year.

The development represents massive value creation for Aker BP and the other partners, as well as the Norwegian society. Both the operator, the partners and the contractors deserve praise for their excellent achievement. This is evidence that the Norwegian oil and gas industry is still one of the best in the world.

Odd Ragnar Heum
VP Operations and Asset
Development Johan Sverdrup

LOW EMISSIONS. LOW COST. HIGH QUALITY.

There are a number of factors that make this field and the development project unique. At plateau, the field will produce 660,000 barrels of oil per day. Break-even price for the full-field development is below USD 20 per barrel. Production is anticipated to reach plateau for the first phase during the summer of 2020, with a production of 440,000 barrels a day.

The expected operating costs are below USD 2 per barrel.

The Johan Sverdrup field is powered with electricity from shore, leading to CO2 emission reductions estimated at more than 620,000 tonnes per year. The field emits 0.67 kg of CO2 per barrel, compared with a global average of around 18 kg.

After 2022, Johan Sverdrup will also provide power from shore to other fields on the Utsira High, including Ivar Aasen, Edvard Grieg and Gina Krog, as well as the Sleipner field further south.

Production 2019

7.9
m b o e p d (net)

Production Efficiency

%
Production start: 2019

PHASE 2

The Johan Sverdrup field is being developed in two phases. The plan for development of Phase 2 was approved by the Norwegian authorities in May 2019. The second phase in-cludes development of a new processing platform (P2), which will be the second of its kind at the field center. When this is installed, the field will be complete with five platforms.

Phase 2 also entails modifications of the riser platform and the field center, five subsea templates, in addition to increased power-from-shore supply to the Utsira High.

When the second processing platform commences operation in 2022, production capacity will increase from 440,000 to 660,000 barrels per day.

Highlights from 2019

  • March

    Record-breaking marine operation where the processing platform and the living quarters platform, a bridge and a flare stack were lifted into place in just three days. The processing platform lift was the heaviest lift ever executed offshore

  • 15 May

    Phase 2 plan approved by Norwegian authorities. Phase 2 includes a second processing platform and increased capacity for oil production up to 660,000 barrels a day

  • 5 October

    Johan Sverdrup on stream from the first of eight pre-drilled oil production wells

  • 21 October

    First oil from Johan Sverdrup to Mongstad. The oil transported from the field in the North Sea to the plant, a distance of 283 kilometers. At the Mongstad complex, the oil is stored and prepared for shipping to markets all over the world

  • 10 November

    All eight pre-drilled oil production wells on stream and 12 pre-drilled water injection wells initiated.

  • 3 December

    Reaches daily production of 350,000 barrels

  • 7 January 2020

    Official opening of the Johan Sverdrup field. Start-ed drilling of the first new production well