Proceeding with Phase 2 of the Johan Sverdrup Development
The Johan Sverdrup partnership has now decided to proceed with Phase 2 (DG2) of the Johan Sverdrup development, awarding FEED contracts to Aker Solutions, Kværner and Siemens. Phase 1 of Johan Sverdrup is under development, with first oil scheduled for late 2019. The partners will now proceed with maturing Phase 2 for the investment decision and submission of the plan for development and operation (PDO) in the second half of 2018. Phase 2 is scheduled to come on stream in 2022.
Statoil has implemented several improvement programmes for Phase 2 in the Johan Sverdrup development. Capital expenditures for Phase 2 are now estimated at between EUR 4.4 – 6.0 billion, halving the estimate since the PDO was submitted for Phase 1 of Johan Sverdrup. The partnership has also decided on the development concept for Johan Sverdrup. Phase 1 of the development establishes a field centre consisting of four platforms on the field. Phase 2 builds on this infrastructure, adding another processing platform to the field centre. Overall this will result in a processing capacity of 660,000 barrels of oil per day.
The following FEED contracts will be awarded in connection with the decision to proceed with the development that has now been made:
- Processing platform, Aker Solutions
- Jacket, Kværner
- Power supply from shore, Siemens
Phase 2 also includes the development of the Avaldsnes (east), Kvitsøy (south) and Geitungen (north) satellite areas to be phased in for processing and export on the field centre. 28 new wells are planned to be drilled in connection with the Phase 2 development. The Phase 2 concept also includes the establishment of an area-wide solution for power from shore for the Utsira High by 2022. Maturing and planning Phase 2 parallel with the development of Phase 1 will ensure a consistent full-field solution and cost-efficient hook-up when Phase 1 is on stream.
Facts About Johan Sverdrup
Phase 1
- Includes the development of four platforms, three subsea installations for water injection, power from shore, export pipeline for oil (Mongstad) and gas (Kårstø).
- Under development; 40% of the development is completed.
- Break-even Phase 1: Below USD 20 per barrel.
- Production start: late 2019.
Phase 2
- Includes development of another processing platform for the field centre + the Avaldsnes, Kvitsøy and Geitungen satellite areas, in addition to power from shore to the Utsira High in 2022.
- Made the DG2 decision to proceed with the development.
- Investment decision (DG3) and submission of the plan for development and operation: second half of 2018.
- Break-even price: Below USD 30 per barrel.
- Production start: 2022.
Full field (Phase 1 + Phase 2)
- Resource estimate: 2.0 – 3.0 billion barrels of oil equivalent.
- Break-even price: below USD 25 per barrel.