Sverdrup’s Phase 1 Capex Estimated at $1 Bln Less

Statoil, the operator for the Johan Sverdrup development, has presented an updated capex estimate, for the first phase of the development, showing reduced capital expenditures as a result of positive market response in contracts and purchase orders.

In the Plan for Development and Operations (PDO), which was submitted to the Ministry of Petroleum and Energy (MPE) on February 13, 2015 and approved by the MPE on August 20, 2015, capex for the first phase development was estimated at NOK 117 billion in real terms (NOK 2015) and NOK 123 billion in nominal terms.

According to Oslo-listed Det norske, overall capex for the first phase has in the updated capex estimate been reduced by NOK 9 billion (approx $1.06 billion) from NOK 123 billion to NOK 114 billion in nominal terms, assuming the same currency assumptions as in the PDO. The contingency level (in NOK) is maintained in the updated estimate and reflects risks in scope, schedule and project execution.

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