Johan Sverdrup Development Plan Approved
- Business & Finance
The plan for development and operation (PDO) for Johan Sverdrup, phase one, was approved by the Ministry of Petroleum and Energy on Thursday (August 20).
In addition the associated plans for installation and operation (PIO) for transportation pipelines and power supply from shore were approved.
“We are delighted that the development plan for the Statoil-operated Johan Sverdrup field has been approved. The field is of great importance, and will generate substantial spin-offs and value for partners and society for more than 50 years. Focused efforts are now underway in the partnership to ensure that the opportunities and enormous values in the Johan Sverdrup field are captured,” says Arne Sigve Nylund, executive vice president for Development and Production Norway.
“We are on schedule in the Johan Sverdrup development. The project activities will now be stepped up, and more contracts will be awarded in the autumn. Last week the first piece of the Johan Sverdrup development, the pre-drilling template, was installed on the field in the North Sea. In addition the construction of the first jacket has started at Kværner Verdal. Contracts worth more than NOK 40 billion have been awarded so far in the development, 75 percent of which have been landed by suppliers with Norwegian invoice addresses,” says Øivind Reinertsen, senior vice president for Johan Sverdrup.
The Johan Sverdrup oil field will be developed in several phases. Phase one consists of four bridge-linked platforms, in addition to three subsea water injection templates.
The ambition is a recovery rate of 70%, allowing for advanced technology for increased oil recovery (IOR) in future phases. The phase one development has a production capacity in the range of 315,000-380,000 barrels per day. First oil is planned for late 2019.
The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil.