No ownership changes in Johan Sverdrup
There will be no changes in the ownership structure of the giant Johan Sverdrup oilfield, located in the North Sea, offshore Norway.
In a statement on Monday, December 21, 2015, Det norske, a partner in the field, said that the King in Council has concluded on the complaint from Det norske oljeselskap ASA regarding the apportionment of ownership interests in the Johan Sverdrup field. The King in Council decided that the decision made by the Ministry of Petroleum and Energy in July 2015 will not be changed.
Namely, Det norske oljeselskap, a partner in the development, had appealed the petroleum’s ministry proposed distribution of ownership from July: Statoil (operator) 40.0267%, Lundin Norway 22.6%, Petoro 17.36%, Det norske oljeselskap 11.5733% and Maersk Oil 8.44%.
The ministry’s proposal meant that the ownership of Det norske would be even lower than the one that had been proposed previously by the majority of the partners in the project, excluding Det norske.
While submitting the development plan for the Johan Sverdrup in February this year, the majority of partners, except for Det norske which disagreed, asked the ministry to determine the final allocation of resources in Johan Sverdrup, based on the following proposal: Statoil 40.0267%, Lundin Norway 22.12%, Petoro 17.84%, Det norske oljeselskap 11.8933% and Maersk Oil 8.12%.
The Johan Sverdrup field consists of two areas to be unitized into one field development. More precisely, the field covers three production licences: PL 501/501B; PL 265 and PL 502.
Det norske had alleged that the western part, in which it owns a share is more valuable than the eastern part, with more resources, and easier to recover oil, making the investment less expensive, that should eventually lead to Det norske owning a larger share in the unitized field.
In a presentation earlier this year, supporting its case Det norske said that allocating the interest based solely on volume, would be like trading a house located in a rural area for a house located in the very best parts of western Oslo, swapping one square meter for one square meter regardless of the amount of money spent on improving the house or its future value.
Johan Sverdrup nod
The plan for development and operation (PDO) for phase one of the Johan Sverdrup development, in the North Sea offshore Norway, was approved by the Ministry of Petroleum and Energy Thursday, August 20, 2015.
Phase one consists of four bridge-linked platforms, in addition to three subsea water injection templates. The capital expenditures for Phase one have been estimated to NOK 117 billion or $14.2 billion (2015 value) and a planned production capacity of 315 000 to 380 000 barrels of oil equivalent per day.
Offshore Energy Today Staff