Statoil and its partners have agreed to move forward with a $5.92-6.51 billion 2nd phase development of the giant Johan Sverdrup field offshore Norway at a sub-$30/bbl break even price.
The cost is half that estimated, when Statoil submitted its Phase 1 plan for development and operations, and it covers a 5th process platform at the Johan Sverdrup field centre, development of the Avaldsnes, Kvitsøy and Geitungen satellite areas, including 28 wells, and power from shore to the Utsira High in 2022.
Full field costs, to tap the 2-3 billion resources at Johan Sverdrup, are set to be below $25/bbl.
Front end contracts have already been awarded to Aker Solutions, Kværner and Siemens.
A plan for development and operation is expected to be submitted in 2H 2018, with 1st oil schedule for 2022.
Johan Sverdrup is one of the 5th largest fields on the Norwegian Continental Shelf.
Phase 1 of Johan Sverdrup, which sits on the Utsira High, in 110-120m water depth, 160km offshore Stavanger, is under development, with 1st oil scheduled for late 2019.
“The quality of phase 1 and the improvement work we have performed with our partners and suppliers for phase 2 has enhanced profitability. The break-even price for the full-field development is now less than $25 per barrel and with an ambition of a world class recovery rate of 70 %,” says Statoil’s project director for Johan Sverdrup, Kjetel Digre.
Phase 1 of the development comprises a field centre with 4 platforms.
Adding the 5th platform will increase processing capacity to 660,000 b/d.
Oil from the field will be piped to the Mongstad terminal in Hordaland.
Gas will be transported via Statpipe to the Kårstø processing plant in North Rogaland.
Daily production during 1st phase estimated at 440,000 barrels per day.
Aker Solutions' contract is for front end engineering and design (FEED) on the new process platform and the bridge that will connect it to the development's riser platform.
The contract includes the design of a module and the work to integrate this with the riser platform.
The work will be delivered in Q1 2018 and is part of the 10-year framework engineering agreement awarded to Aker Solutions for Johan Sverdrup in 2013.
The contract is valued at about $35.5 million.
Kvaerner has signed a contract with Statoil for delivery of a FEED study on Johan Sverdrup Phase 2 for P2 Jacket.
The work starts immediately and will continue until delivery of final FEED study report 1 February 2018.