Norwegian oil company Statoil reported on September 4, 2017, that the company has completed nearly 60 % of the Phase 1 of the Johan Sverdrup project in the North Sea while further reducing the gross capital expenditure by NOK 5 billion to NOK 92 billion ($11.8 bln).
Statoil is the operator of the project with 40.02 % interest.
According to Aker BP, the Johan Sverdrup development passed the halfway mark over the summer, and is now nearly 60% complete, ahead of plan and below budget.
Aker BP also added that, since the plan for development and operation (PDO) of the Johan Sverdrup field was approved by Norwegian authorities, planned investments for Johan Sverdrup Phase 1 have been reduced by a total of NOK 31 billion.
Johan Sverdrup is one of the 5 largest oil fields on the Norwegian continental shelf.
The breakeven price for the full field development is estimated to less than $25 per barrel and the total resources in the Johan Sverdrup field are estimated to between 2.0 and 3.0 billion barrels of oil equivalent.
Phase 1 is expected to start up in late 2019 with production capacity estimated at 440,000 barrels of oil per day.
Phase 2 is expected to start up in 2022, with full field production estimated at 660,000 barrels of oil per day.
Alex Schneiter, CEO of Lundin Petroleum said: «The world class Johan Sverdrup project is progressing really well and continues to get better and better. It has been my long held view that costs will continue to come down and today we can announce that the Johan Sverdrup partnership has managed to lower development costs even further.»