Norway Greenlights Sverdrup Plan, Gassco Pipeline Operator

Norwegian Parliament has approved the plan for development and operation of the first stage of the Johan Sverdrup field in the North Sea.

The development will involve investment of nearly 120 billion in the first stage. Several major contracts related to the development of the Johan Sverdrup is already allocated Norwegian companies.

“Sverdrup is the start of a new chapter in Norwegian oil history. The development is the largest industrial project in recent times. Field will provide jobs and income also for our grandchildren. There is reason to be both proud and delighted,” says Minister Tord Lien (FRP).

Gassco is to take over as operator for the gas transport system when it becomes operational.

This decision means that Gassco will become operator of the 156-kilometre pipeline and responsible for its technical operation.

Running from the field’s riser platform, the 18-inch pipeline will be tied into the Statpipe rich gas system on the seabed west of Karmøy. That will allow its gas to flow to the Kårstø process plant north of Stavanger.

The new pipeline’s capacity will exceed the Johan Sverdrup’s own requirements, creating opportunities for additional gas exports from the Utsira High area. This new link accordingly has great strategic importance for the Kårstø facility.

Johan Sverdrup is due to come on stream in December 2019, and is expected to produce for 50 years.

“It is very gratifying that Norwegian suppliers have major projects and so clearly assert themselves against tough international competition. Industry shows that it is able to adapt and adjust to a new competitive situation. This is good,” says The Minister.