Giant North Sea oil field’s $1.3 billion third chapter is a go

July 1, 2025, by Melisa Cavcic

Norwegian state-owned energy giant Equinor has taken a final investment decision (FID) for the third phase of an offshore project in the North Sea, which is considered the third-largest oil field on the Norwegian Continental Shelf (NCS).

Johan Sverdrup field; Credit: Lizette Bertelsen/Jonny Engelsvoll/Equinor

The FID follows a contract TechnipFMC secured in March 2025 to design, manufacture, and install subsea production systems, umbilicals, and rigid pipe for the Johan Sverdrup Phase 3 development. Further contracts, including platform modifications and the drilling of eight wells, are planned to be awarded later in 2025. The next chapter of the North Sea project entails new subsea infrastructure that will boost recoverable volumes by 40–50 million barrels of oil equivalent.

Equinor’s partner, Aker BP (31.6% working interest), describes Johan Sverdrup as the largest oil-producing field in Norway, which ranks among the world’s most carbon-efficient oil fields. The partnership has submitted a notification to the authorities per the existing plan for development and operation (PDO), which is subject to regulatory approval.

This asset, operated by the Norwegian state-owned energy heavyweight, is being expanded with Phase 3, covering the installation of two new subsea templates, tied back to existing infrastructure via new pipelines. The project is said to represent an important step toward the partnership’s ambition of reaching 75% recovery.

Trond Bokn, Equinor’s Senior Vice President for Project Development, highlighted: “By building on the technologies, solutions, and infrastructure from phases 1 and 2 of Johan Sverdrup, we can carry out an efficient development with a rapid start-up of production. The project increases the recovery rate and value creation from Johan Sverdrup, one of the world’s most carbon-efficient oil and gas fields. At the same time, it contributes to stable energy supplies to Europe.”

With the total investments estimated at NOK 13 billion ($1.29 billion), the production start-up from the third phase is expected in the fourth quarter of 2027. The field, discovered in 2010, has an estimated 50-year lifespan. Equinor claims that the field produces 80-90% lower CO2 emissions levels than the global average of any oil field in the world, as it is powered by electricity from shore.

The Johan Sverdrup Phase 1 came on stream in October 2019, while Phase 2 began producing in December 2022. Encompassing an area of 200 square kilometers, the Johan Sverdrup field is located on Utsira High in the central part of the North Sea, 160 kilometers west of Stavanger, at a water depth of 110-120 meters.

Aside from Equinor and Aker BP, other partners in the project are Petoro (17.36%) and TotalEnergies EP Norge (8.44%). The operator claims that the project leveraged artificial intelligence to analyse field layouts and well paths to ensure optimal resource utilization, enabling faster decision-making and resulting in cost savings of NOK 130 million ($12.9 million) for the third phase.

Marianne Bjelland, Vice President for Johan Sverdrup, underlined: “In 2024, Johan Sverdrup set a production record with 260 million barrels of oil, the highest annual oil production ever from a Norwegian field. Every third barrel of oil from the Norwegian continental shelf now comes from the field. Phase 3 is an important contribution to maintaining high production from Johan Sverdrup in the years to come.”

The FID comes shortly after the Norwegian state-owned energy titan disclosed the name of its incorporated joint venture (IJV) with Shell, which is being seen as the largest independent oil and gas producer in the UK North Sea.