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Proceeding with Phase 2 of the Johan Sverdrup development

The Johan Sverdrup partnership has decided to proceed with (DG2) Phase 2 of the Johan Sverdrup development.

Phase 1 of Johan Sverdrup is under development, with first oil scheduled for late 2019. The partners will now proceed with maturing Phase 2 for the investment decision and submission of the plan for development and operation (PDO) in the second half of 2018. Phase 2 is scheduled to come on stream in 2022.

Phase 1 of the development establishes a field centre consisting of four platforms on the field. Phase 2 builds on this infrastructure, adding another processing platform to the field centre. Overall this will result in a processing capacity of 660 000 barrels of oil per day.

Capital expenditures for Phase 2 are now estimated at between NOK 40 – 55 billion (NOK billion nominal, fixed currency and excluding IOR), halving the estimate since the PDO was submitted for Phase 1 of Johan Sverdrup.

For further information and contract awards please refer to the Statoil press release dated 21 March 2017.

The Johan Sverdrup partnership:

  • Statoil (operator): 40.0267%
  • Lundin Norway: 22.6%
  • Petoro: 17.36%
  • Aker BP: 11.5733%
  • Maersk Oil: 8.44%

Facts about Johan Sverdrup:

Johan Sverdrup Phase 1:

  • Includes the development of four platforms, three subsea installations for water injection, power from shore, export pipeline for oil (Mongstad) and gas (Kårstø).
  • Under development. Approx. 40 % of the development is completed.
  • More than NOK 60 billion worth of contracts awarded. More than 70 % of the suppliers with a Norwegian billing address.
  • CAPEX estimate: NOK 97 billion.
  • Break-even Phase 1: Below USD 20 per barrel.
  • Production start: late 2019.

Johan Sverdrup Phase 2:

  • Includes development of another processing platform for the field centre + the Avaldsnes, Kvitsøy and Geitungen satellite areas, in addition to power from shore to the Utsira High in 2022.
  • Made the DG2 decision to proceed with the development
  • Investment decision (DG3) and submission of the plan for development and operation: Second half of 2018.
  • Investment estimate: NOK 40 – 55 billion.
  • Break-even price: Below USD 30 per barrel.
  • Production start: 2022.

Full field (Phase 1 + Phase 2):

  • Includes both Phase 1 and Phase 2 of the Johan Sverdrup development.
  • Resource estimate: 2.0 – 3.0 billion barrels of oil equivalent.
  • Break-even price: Below USD 25 per barrel.