Johan Sverdrup is the third largest oil field in the North Sea, and lies 140 kilometres west of Stavanger. With expected resources of 2.7 billion barrels of oil, the field is one of the most important industrial projects in Norway for the next 50 years. Phase 1 of the field was opened in October 2019, and phase 2 is scheduled to begin production in the fourth quarter of 2022.
In 2014, the Norwegian parliament decided that by 2022, the licensees in the Johan Sverdrup field must establish an area solution for power from land that will supply power to the fields Johan Sverdrup, Edvard Grieg, Ivar Aasen and Gina Krog.
Phase 1 of the project is around 80 percent complete, and production is expected to commence in November 2019. Cost estimates for this phase have been reduced by NOK two billion ($240 million), so the updated investment estimate for Phase 1 is now NOK 86 billion ($10.3 billion), a reduction of 30 percent, amounting to NOK 37 billion ($4.4 billion) since submission of the Phase 1 development plan. In the Phase 2 development plan, the companies have reduced the investment estimate to NOK 41 billion ($4.9 billion), and the break-even price for Phase 2 is now less than $25 per barrel. A number of improved recovery technologies are included in the plan:
JOHAN SVERDRUP IN BRIEF
Third largest: Johan Sverdrup is the third largest oil field on the Norwegian continental shelf, with expected resources of 2.7 billion barrels of oil equivalent.
Low emissions: One barrel of oil produced at Sverdrup has emitted 0.17 kilogrammes of CO2 in the first year – almost 100 times lower CO2 emissions than the global average (measured in kilogrammes of CO2 per barrel produced). This is mainly due to power from shore.
Profitable production: In the first year on stream Johan Sverdrup has produced oil worth some NOK 50 billion, i.e. some 130 million barrels of oil (based on an average price of 40 USD/boe.) High recovery factor: The ambition for the field is to achieve a recovery factor of more than 70 percent.
Partners: Equinor: 42.6% (operator), Lundin Norway: 20%, Petoro: 17.36%, Aker BP: 11.5733% and Total: 8.44%